US: Chicago Fed National Activity Index drops to 1.18 in July vs. 2.73 expected

• Chicago Fed's National Activity Index dropped more than expected in July.
• US Dollar Index recovers modestly toward 93.00 after the data.

The Federal Reserve Bank of Chicago's National Activity Index (CFNAI) dropped from 5.33 (revised from 4.11) to 1.18 in July. This reading came in worse than the market expectation of 2.73.

Key takeaways

"Production-related indicators contributed +1.09 to the CFNAI in July, down from +2.21 in June."

"Employment-related indicators contributed +0.38 to the CFNAI in July, down from +1.94 in June."

Market reaction 

The US Dollar Index edged slightly higher after this data and was last seen losing 0.28% on a daily basis at 92.95.