In April, the Philadelphia Fed Business Conditions Index dropped more than expected to -31.3. By item, the decrease in purchase price and sales price is conspicuous. Arrival delays and inventory levels have also fallen from the previous time. On the other hand, new orders, shipments, backlog of orders, number of employees, average weekly working hours, etc. improved from the previous time.
In response to the announcement, US bond yields have fallen, and US stock futures have also moved with a heavy topside. In the foreign exchange market, the reaction is to buy the yen as well as sell the dollar, and the cross yen is pushed down.
From here, we are tilting the position to sell USD.
