US Dollar Strengthens on Positive US Services Data

Reported 6 months ago

The US dollar rose as the services sector in the US rebounded in May, creating uncertainty regarding the Federal Reserve's expected easing cycle later this year. The Institute for Supply Management reported a rise in the nonmanufacturing purchasing managers index to 53.8 in May, higher than April's 49.4. Despite strong data, market analysts believe the US economy is slowing down, with expectations of only two rate cuts by the Fed this year. The euro turned lower, while the Bank of Canada cut interest rates and the Bank of England and European Central Bank are expected to follow suit. The US private payrolls also increased less than expected in May.

Source: YAHOO

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