Key facts
- US manufacturing activity expanded in May, with the ISM Manufacturing PMI rising to 54.
Dollar muted ahead of jobs data; US manufacturing PMI rises
IN SHORT
The US Dollar Index (DXY) has seen muted volatility, trading in a narrow range as traders await clearer signals on Iran negotiations and upcoming US jobs data. Stronger-than-expected ISM manufacturing PMI data for May, which rose to 54, supports a hawkish Federal Reserve outlook.
Key Numbers
54ISM Manufacturing PMI in May
52.7ISM Manufacturing PMI in April
6.87 millionJOLTS jobs number (expected)
0.6%DXY trading range since May 15
6.0CVIX index fall
Who's Involved
ISM
Institute for Supply Management, releasing manufacturing survey
Chris Williamson
Chief Business Economist at S&P Global Market Intelligence
↳ Why This Matters
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.