DXY Futures Slump To Near Two-Month Low

Published on Jun 04, 2024 12:05

The US dollar slumped to its lowest level in nearly two months as softer than expected US data reaffirmed hopes of a Federal rate cut. Data showed that US manufacturing activity slowed for a second consecutive month in May, while construction spending unexpectedly fell in April due to declines in non-residential activity. The ISM Manufacturing PMI for May contracted to 48.7, falling below both the expected 49.6 and April`s 49.2, as per the ISM data. Currently, US dollar index futures are quoting at 104.03, down marginally on the day whereas US benchmark treasury yields declined to around 4.4%. Markets now await the Nonfarm Payrolls report for May, due later this week, which may influence the Fed`s future decisions. Among the basket currencies, EURUSD and GBPUSD were marginally higher at $1.0908 and $1.2799 respectively.