Data on business activity in the manufacturing sector (PMI) USA

• ISM employment index in the manufacturing sector (June), fact 54.5, the forecast 52.8.
• ISM Manufacturing PMI (June), fact 51.7, forecast 51.0.

Data in the US manufacturing sector exceeded expectations. Thus, in addition to the growth of activity in the manufacturing sector, employment in this sector of the US economy also increased, which, given the expectations of the employment report, is a very positive signal for the American dollar. Business activity in the manufacturing sector (PMI) continued to maintain a downward trend, but slowed down the pace of decline.

Fig. 1. ISM manufacturing activity index (PMI) in the USA

Against the background of positive data on the USA and maintaining optimism that the tension in the US-China trade war eased, the US currency continued to strengthen against its main competitors. The US dollar index returned above the level of 96.50, which indicates a potential for strengthening. Significant resistance levels: 96.60 and 96.70, support: 96.40 and 96.30.

Fig. 2. The US dollar index chart. The current price is 96.60 (10-year US government bonds yield is the blue line)

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Hanzenko Anton

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