On June 21, 2024, S&P Global released flash PMI reports for June. The reports indicated that Manufacturing PMI increased from 51.3 in May to 51.7 in June, compared to analyst consensus of 51. Numbers above 50 show expansion.
Services PMI improved from 54.8 in May to 55.1 in June, while Composite PMI increased from 54.5 to 54.6. Both reports exceeded analyst expectations.
S&P Global commented: “The sustained services sector upturn was accompanied by manufacturing output expanding for a fifth successive month in June, though the rate of growth of factory output slowed to the second-weakest seen over this period.”
U.S. Dollar Index tested new highs as traders reacted to the better-than-expected PMI data. Meanwhile, Treasury yields moved away from session lows. Currently, U.S. Dollar Index is trying to settle above the resistance at 105.75 – 106.00 as traders bet on a more hawkish Fed.
Gold pulled back towards the $2335 level after the release of strong PMI reports. Fed policy outlook is an important driver for gold markets, so the solid performance of the U.S. economy is bearish for gold. Strong dollar puts additional pressure on gold markets in today’s trading session.
SP500 pulled back below the 5470 level as traders reacted to the reports. Traders continue to take profits near historic highs.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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