• Headline ISM Manufacturing PMI unexpectedly rose to 56.1 from 55.4 in May. 
• The strong data boosted the buck across the board. 

The headline ISM Manufacturing Purchasing Manager's Index (PMI) rose to 56.1 in May from 55.4 in March versus expectations for a small decline to 54.5, according to the latest release by the Institute for Supply Management (ISM). 

Subindices:

The Prices Paid Index fell slightly to 82.2 in May from 84.6 in April. 

The New Orders Index rose to 55.1 from 53.5. 

The Employment Index fell to 49.6 from 50.9, the first drop back below 50 since August 2021. 

Market Reaction

The stronger than expected US economic data which alludes to a pick up in growth in May versus expectations for a moderation in growth has lifted the US dollar, with the DXY jumping from under 102.10 to session highs in the 102.30s in recent trade.