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  • US Manufacturing and Services PMI rose more than expected in June.
  • US Dollar Index extends its daily slide toward 96.50.

The business activity in the US manufacturing sector contracted at a very soft pace in June with the IHS Markit’s advanced Manufacturing PMI recovering to 49.6 from 39.8 in May. This reading came in better than the market expectation of 48. 

Further details of the publication revealed that the Services PMI rose to 46.7 from 37.5 while the Composite PMI advanced to 46.9 from 37.

Commenting on the data, “the flash PMI data showed the US economic downturn abating markedly in June,” said Chris
Williamson, Chief Business Economist at IHS Markit. “The second quarter started with an alarming rate of collapse but output and jobs are now falling at far more modest rates in both the manufacturing and service sectors.”,

Market reaction

The US Dollar Index remains under pressure following the upbeat PMI data. As of writing, the index was down 0.48% on the day at 96.55.