• Industrial Production in the US grew at a stronger pace than expected in May.
• The US Dollar Index stays in daily range below 105.50.

Industrial Production in the US grew 0.9% on a monthly basis in May, the US Federal Reserve (Fed) reported on Tuesday. This reading came in better than the market expectation for an increase of 0.3%.

"Manufacturing output posted a similar gain of 0.9% after declining in the previous two months," the Fed noted in its press release. "At 103.3% of its 2017 average, total industrial production in May was 0.4% higher than its year-earlier level. Capacity utilization moved up to 78.7% in May, a rate that is 0.9 percentage point below its long-run (1972–2023) average."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen trading virtually unchanged on the day at 105.34.