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  • US Markit Manufacturing PMI recovered sharply in June. 
  • US Dollar Index extends its slide below 97.50.

The IHS Markit’s Manufacturing PMI improved to 49.8 in June (final) from 39.8 in May to record its biggest monthly jump. This reading came in slightly better than the market expectation and the previous estimate of 49.6.

Further details of the publication revealed that the Output Index recovered to 47.5 from 34.4 and the Final New Orders Index climbed to 50 from 34.6.

Commenting on the data, “US manufacturers have reported a marked turnaround in business conditions through the second quarter, with collapsing production and demand in April at the height of the COVID-19 lockdown turning rapidly to stabilisation by June,” said Chris Williamson, Chief Business Economist at the IHS Markit.

Market reaction

The risk-on market environment continues to weigh on the greenback in the American session. As of writing, the US Dollar Index was down 0.08% on the day at 97.30.