USD strengthens after July ISM manufacturing beats estimates, while oil prices drop on US-Iran negotiation expectations.
Oil prices tumbled on Monday as speculation grew over renewed US-Iran talks, following Tehran’s indication of no immediate plans for direct negotiations. The US Dollar Index (DXY) edged up 0.1% to near 99.90, remaining below the 100.00 mark.
The ISM Manufacturing PMI rose to 55.6 in July from 53.3, surpassing the 54.0 forecast, while the New Orders Index climbed to 56.7. The Prices Paid component eased slightly to 71.1 but stayed in expansion territory, signaling persistent cost pressures.
EUR/USD fell 0.2% to around 1.1510, retreating from last week’s gains as stronger US Treasury yields supported the dollar. The pair held above 1.1500, maintaining its broader recovery trend.