Resilient US manufacturing and higher Treasury yields support the DXY despite a softer-than-expected ISM PMI print.
The US Dollar Index (DXY) remained firm near 101.40, bolstered by resilient manufacturing activity and elevated long-term Treasury yields. The June ISM Manufacturing PMI fell to 53.3 from May’s 54.0, missing forecasts but staying above the 50.0 expansion threshold.
Markets are balancing mixed economic signals ahead of Friday’s nonfarm payrolls report. The slight dip in PMI contrasts with stronger-than-expected regional manufacturing surveys earlier in the week. Treasury yields have climbed, reflecting investor caution over potential Fed policy shifts.
Traders are adopting a wait-and-see approach, with focus shifting to upcoming labor market data for further direction on the dollar’s trajectory.