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  • US Markit Manufacturing PMI continued to edge higher in May.
  • US Dollar Index stays in the negative territory below 90.00.

The IHS Markit’s Manufacturing PMI for the US improved to 62.1  (final) in May from 60.5  in April. This reading came in better than the flash estimate and the market expectation of 61.5 and showed an ongoing expansion in the manufacturing sector’s business activity at a strong pace.

Commenting on the data, “US manufacturers are enjoying a bumper second quarter with the PMI hitting a new high for the second month running in May,”  Chris Williamson, Chief Business Economist at IHS Markit, said. “However, elevated levels of other survey indicators are less welcome: prices charged by manufacturers are also rising at an unprecedented rate, linked to soaring input costs and unparalleled capacity constraints.”

Market reaction  

This report doesn’t seem to be having a significant impact on the USD’s performance against its major rivals. As of writing, the US Dollar Index was posting small daily losses at 89.80.