Dollar Index Futures Firm Above 105 Mark

Published on May 24, 2024 11:18

The dollar index futures firmed up above 105 mark and is set for a weekly gain of 0.65% amid reduced expectations of a near term interest rate cut. Gains in greenback were driven by robust S&P surveys known as the Purchasing Managers Index (PMI) and encouraging weekly Jobless Claims figures, both indicative of a healthier US economy. S&P Global Manufacturing PMI for the US increased to 50.9 in May, up on a monthly basis from 50.0 in April, surpassing forecast of 50.0. Service sector PMI rose to 54.8 from 51.3 in the previous month, exceeding the prediction of 51.3 on a monthly basis. Meanwhile, US Department of Labor reports 215K employment insurance beneficiaries in the week ending May 18, lower than the estimated 220K and the prior week`s figure of 223K, implying a resilient labor market. Among the basket currencies, EURUSD and GBPUSD are quoting marginally higher at $1.0820 and $1.2692 respectively.