US Dollar Bid after ISM, Still in Red Near 95.50
The greenback, tracked by the US Dollar Index, has managed to leap to the 95.65 area after the release of the ISM manufacturing, although it has returned to the mid-95.00 soon afterwards.
US Dollar supported near 95.30
USD trimmed part of its strong daily losses after US ISM Manufacturing has surprised markets to the upside during May, coming in at 51.3 vs. 50.4 expected and up from April’s 50.8.
Supporting the rebound, Markit’s manufacturing PMI has also come in above expectations, rising to 50.7 during the same period.
The data add to the expected rebound in Q2, as shown by the Atlanta Fed GDP Now Forecast, which now sees the economy expanding at an annualized 2.9%.
Ahead in the session, the Fed’s Beige Book is due next, although its market impact would remain flat, with pretty much unchanged views from the last report.
US Dollar relevant levels
The index is losing 0.41% at 95.49 and a break below 95.11 (low May 23) would open the door to 94.85 (20-day sma) and then 94.68 (55-day sma). On the flip side, the initial up barrier lines up at 95.97 (high May 30) seconded by 96.03 (100-day sma) and finally 96.42 (high Mar.28).