• US S&P Manufacturing PMI declined to 52.2 in July.
• US Dollar Index stays deep in negative territory near 105.50.

The business activity in the US manufacturing sector expanded at a softer pace in July than in June with the S&P Manufacturing PMI falling to 52.2 from 52.7. This print came in below the flash estimate and the market expectation of 52.3.

Commenting on the data, "with the exception of pandemic lockdown periods, July saw US manufacturers report the toughest business conditions since 2009," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "A growth spurt in the spring has quickly gone into reverse, with new orders for factory goods down for a second straight month in July, leading to the first drop in production for two years and sharply reduced employment growth."

Market reaction

The dollar struggles to find demand after this data and the US Dollar Index was last seen losing 0.35% on the day at 105.48.