US ISM Manufacturing PMI Falls to 49.5 in May as Dollar Holds Near 104.50

5 articles · Updated · vtmarkets.com · Jun 1

The ISM manufacturing PMI came in at 49.5 for May, slipping below the 50 threshold and signaling a slight contraction in the US factory sector.
The release landed as the US Dollar Index hovered near 104.50, with investors also weighing tense US-China trade talks and haven demand for the greenback.
Markets are now shifting to Friday’s labor report, where consensus sees May payrolls rising by about 150,000 and unemployment holding at 4.1%.
Rate expectations remain sensitive to incoming data, with CME FedWatch implying roughly a 60% chance of a 25-basis-point Fed cut by year-end.

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