• The flash US Manufacturing PMI was in line with expectations, but the Services PMI was weaker.
• The US dollar is weakening as a result, with the DXY dropping to fresh session lows in the 101.70s.    

The flash estimate for May of IHS Markit's headline US Manufacturing PMI came in at 57.5, in line with expectations, data released on Tuesday showed. That was a slight decline from 59.2 last month. 

However, the flash estimate for May of IHS Markit's headline US Services PMI came in at 53.5, below expectations for a reading of 55.2 and below last month's 55.6. That meant that the flash estimate of IHS Markit's US Composite PMI fell to 53.8 in May from 55.6 in April. 

Market Reaction

The US dollar has been under selling pressure in recent trade in wake of the downbeat US Service PMI numbers, which come at a time when recent earnings announcements (from Snap Inc. on Tuesday but also lots of big US retailers last week) have been warning about a worsening consumer environment. The DXY recently fell to fresh session lows under the 101.75 level, and is now down about 0.4% on the day.