DXY resurges after positive PMI data
Daily Currency Update
The US dollar index (DXY) was up by more than half a point this morning at the 106.14 level. US Flash Manufacturing Purchasing Managers' Index (PMI) was slightly higher than forecast, at 50 versus 49.5. A PMI greater than forecasted is usually good for the currency. This is one of the leading indicators of economic health as businesses’ purchasing managers hold the most up-to-date insight into the company’s economic view. The US Flash Services PMI was also higher than forecast, at 50.9 versus 49.9.Key Movers
The overall Flash Manufacturing PMI and Flash Services PMI for Europe was down as the economic downturn looks to have accelerated. The EUR was down by 0.55% against the USD. French Flash Manufacturing PMI was lower than forecasted, at 42.6 versus 44.4 while French Flash Services PMI was higher than forecast at 46.1 versus 44.9. German Flash Services PMI was lower than the forecasted at 48 versus 50.1The UK also experienced mixed PMI data. UK Flash Manufacturing PMI was higher than expected and Flash Services PMI was slightly lower.
Expected Ranges
- EUR/USD: 1.0601 - 1.0694 ▼
- GBP/USD: 1.2171 - 1.2288 ▼
- AUD/USD: 0.6334 - 0.6379 ▲
- USD/CAD: 1.3656 - 1.3739 ▲