Dollar stays firm after ISM Manufacturing Index showed less than expected decline in June. Most importantly, principle concerns of US-China trade and US-Mexico trade are now eased, arguing that there might be a rebound in sentiments ahead.
ISM Manufacturing Index dropped to 51.7 in June, down slightly from 52.1 but beat expectation of 51.0. On the negative side, New Orders dropped -2.7 to 50.0. Prices dropped sharply by -5.3 to 47.9. However, Production rose 2.8 to 54.1. Employment also rose 0.8 to 54.7.
Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee: “Respondents expressed concern about U.S.-China trade turbulence, potential Mexico trade actions and the global economy. Overall, sentiment this month is evenly mixed.”
