The US dollar was already recovering in the wake of the second quarter, perhaps also feeling festive ahead of the 4th of July fireworks.
The data gave it another reason to be cheerful. The ISM Manufacturing PMI came out at 57.8 points, much higher than 55 that was anticipated. The employment component jumped to 57.2, indicating hiring in the sector and a positive sign for Friday’s Non-Farm Payrolls.
New orders came out at a sky-high level of 63.5 points, reflecting robust growth. Prices paid slipped to 55 points, but this indicator is quite volatile.
Markit’s final manufacturing PMI came out at 52, a tick down from 52.1 originally reported. Construction spending remained flat, below 0.3% that was expected. Nevertheless, the ISM figure remained dominant.
Is the beginning of a rally for the dollar? Not necessarily. After the Independence Day parties, the US dollar faces a few hurdles: the FOMC meeting minutes and the Non-Farm Payrolls.
