The US dollar slumped to its lowest level in nearly two months as softer than expected US data reaffirmed hopes of a Federal rate cut. Data showed that US manufacturing activity slowed for a second consecutive month in May, while construction spending unexpectedly fell in April due to declines in non-residential activity. The ISM Manufacturing PMI for May contracted to 48.7, falling below both the expected 49.6 and April’s 49.2, as per the ISM data. Currently, US dollar index futures are quoting at 104.03, down marginally on the day whereas US benchmark treasury yields declined to around 4.4%. Markets now await the Nonfarm Payrolls report for May, due later this week, which may influence the Fed’s future decisions. Among the basket currencies, EURUSD and GBPUSD were marginally higher at $1.0908 and $1.2799 respectively.
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