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Disappointing US data force dollar to surrender earlier gains

Disappointing US data force dollar to surrender earlier gains

U.S.  Manufacturing Purchasing Managers' Index (PMI) released by Markit Economics shoed a retreat to 50.2 in May, lower than the previous reading of 52.6 for April. This was also lower than the forecast of 52.5.

As well, the U.S. PMI services came in at 50.9 in May after registering 53.0 in April, while economists predicted the reading to go higher to 53.2.

Another report from the U.S. showed that new home sale decreased by 6.9 percent after a jump of 8.1 percent in April, where the fall was sharper that analysts’ projections of 2.8 percent slump.

It is worth noting that New Home Sales in the United States have averaged 650.26 thousand units from 1963 until 2019, reaching an all-time high of 1,389 thousand units in July 2005 and a record low of 270 thousand units in February 2011.

The US dollar Index, which tracks the green currency’s movements against 6 major currencies, surrendered its earlier gains as it dipped from a high of 98.23 to hover lower at 97.92.

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