Key facts
- US manufacturing activity expanded in May, with the ISM Manufacturing PMI rising to 54.
- The Dollar Index (DXY) has experienced low volatility over the past two weeks.
- Currency volatility (CVIX) has fallen to its lowest level in over two years.
- Traders are awaiting clarity on Iran negotiations and upcoming US jobs data.
- Recent strong US data supports a hawkish outlook for the Federal Reserve.
The ISM Manufacturing PMI is a key indicator of the health of the US manufacturing sector. A reading above 50 signifies expansion. Recent data, including the May PMI, suggests a potential reacceleration of US economic growth, which could influence the Federal Reserve's monetary policy decisions. Market participants are closely watching this data alongside geopolitical developments and labor market figures.