By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: US Dollar continues to fall as ISM PMI data remains weak.
Share
Notification Show More
Latest News
University of Dubai and Tech Firm Technology LLC Sign Strategic Cooperation Agreement in Cybersecurity and Digital Resilience
Business
For the First Time in the Middle East: The Festival “Moscow Seasons” Arrives in Kuwait from September 25th to 27th
Gulf
Rasmala Delivers Robotics-Enabled Logistics Facility in the Netherlands
Gulf
Marathon Des Sables confirms Jordan as the 2025 venue for the fifth year in a row
Gulf
Explore the Future: “Forum Moscow 2030. Territory of the Future” Invites Young UAE Visitors to Experience Innovation, Creativity, and Urban Adventure
Gulf
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > US Dollar continues to fall as ISM PMI data remains weak.
Forex

US Dollar continues to fall as ISM PMI data remains weak.

News Room
Last updated: 2024/06/03 at 5:19 PM
News Room
Share
3 Min Read
SHARE

The US Dollar Index (DXY) experienced a decline towards the 104.15 area as a result of the weak ISM PMI report for May and decreasing US Treasury yields. The ISM Manufacturing PMI report showed a contraction in the manufacturing sector, falling below expectations and increasing the likelihood of a Fed rate cut in September. This data has shifted market focus towards upcoming labor market figures, particularly the Nonfarm Payrolls report, to gather more information on the US economy.

Investors are expressing concerns about the contracting manufacturing sector indicated by the ISM PMI report for May, which dropped to 48.7, below both the expected and April figures. This data has led to a rise in market-based probabilities of a Fed rate cut in September, with the likelihood reaching nearly 60%. The sharp decline in US Treasury yields following the release of the data has heightened anticipation for the upcoming Nonfarm Payrolls report, which could impact the Fed’s future decisions.

The DXY struggled as negative indicators resurfaced following the disappointing ISM PMI report, causing the index to fall below key SMAs. The RSI and MACD indicators also fell into negative territory, indicating an increase in bearish sentiment and selling pressure. However, with a three-day losing streak, there is a possibility that buyers might step in for a slight correction.

The US Dollar is the official currency of the United States and dominates global foreign exchange turnover, with over 88% of all transactions involving the USD. The USD’s value is primarily influenced by monetary policy set by the Federal Reserve, which aims to achieve price stability and full employment through adjustments in interest rates. The Fed may raise rates to control inflation or lower them to stimulate economic growth, impacting the value of the USD. Extreme measures like quantitative easing (QE) and quantitative tightening (QT) are used in specific circumstances to stimulate or tighten credit flow, respectively, affecting the strength of the US Dollar.

In conclusion, the recent decline in the US Dollar Index can be attributed to the weak ISM PMI report for May and decreasing US Treasury yields, leading to expectations of a Fed rate cut in September. As investors await the upcoming Nonfarm Payrolls report for further insights into the US economy, the USD faces challenges amidst negative indicators and bearish sentiment. The value of the US Dollar is intricately linked to Federal Reserve monetary policy, which aims to maintain price stability and employment levels through interest rate adjustments. Extreme measures like quantitative easing and tightening can have significant impacts on the USD’s strength, underscoring the importance of understanding the factors influencing the currency’s value in the global financial landscape.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room June 3, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Foreign Ministers from Qatar, Saudi Arabia, Jordan, UAE and Egypt release joint statement in support of mediation efforts in Gaza
Next Article HONOR introduces advanced four-layer AI architecture and partners with Google Cloud to enhance AI capabilities at VivaTech 2024
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

University of Dubai and Tech Firm Technology LLC Sign Strategic Cooperation Agreement in Cybersecurity and Digital Resilience
Business August 15, 2025
For the First Time in the Middle East: The Festival “Moscow Seasons” Arrives in Kuwait from September 25th to 27th
Gulf August 15, 2025
Rasmala Delivers Robotics-Enabled Logistics Facility in the Netherlands
Gulf August 4, 2025
Marathon Des Sables confirms Jordan as the 2025 venue for the fifth year in a row
Gulf July 31, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?