Key Insights
- ISM Manufacturing PMI improved from 46.3 to 47.1. in April
- S&P 500 Global Manufacturing PMI increased from 49.2 to 50.2.
- U.S. Dollar Index moved above the 101.90 level.
U.S. Manufacturing Sector Contracted Again In April
On May 1, the Institute for Supply Management released its Manufacturing PMI report for April. The report indicated that ISM Manufacturing PMI increased from 46.3 in March to 47.1 in April, compared to analyst consensus of 46.8.
US Dollar Index Price Forecast
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See all US Dollar Index forecastsISM commented: “The U.S. manufacturing sector contracted again; however, the Manufacturing PMI improved compared to the previous month, indicating slower contraction. The April composite index reading reflects companies continuing to manage outputs to better match demand for the first half of 2023 and prepare for growth in the late summer/early fall period.”
Earlier, traders had a chance to take a look at the final reading of the S&P 500 Global Manufacturing PMI report for April. The report showed that S&P 500 Global Manufacturing PMI improved from 49.2 to 50.2, compared to analyst consensus of 50.4.
SP500 Tests Resistance At 4175
SP500 continued its attempts to settle above the resistance at 4175 after the release of the reports. It should be noted that trading action may stay choppy ahead of the Fed Interest Rate Decision, which will be released on Wednesday.
U.S. Dollar Index is trying to climb above the 101.90 level as Treasury yields rebound after the recent pullback. The better-than-expected ISM Manufacturing PMI report provided material support to the American currency.
Gold pulled back below the $2000 level as traders reacted to higher Treasury yields and stronger dollar. From a big picture point of view, gold remains stuck in the $1980 – $2000 range.
For a look at all of today’s economic events, check out our economic calendar.