Promising U.S. economic data
Christophe Chevalier June 2, 2020 5:36 PM
U.S. economic data posted yesterday are promising as they show an improvement in activity.
Yesterday, the Institute for Supply Management's Manufacturing Purchasing Mangers' Index climbed to 43.1 in May (vs 41.5 in April) showing the contraction of factory activity was slowing. The Markit U.S. Manufacturing Purchasing Managers' Index posted 39.8 in May (vs 36.1 in April). Construction Spending declined only 2.9% on month in April (-7.0% expected).
From a technical point of view, on a daily chart, Dollar Index has broken below the lower boundary of a triangle and is capped by its 50-day moving average (in blue). The daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness as long 101.00 is not broken to the upside. The nearest support would be set at horizontal support at 96.30. A second one would be set at March bottom at 94.60.
Source: TradingView, GAIN Capital
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