Currency Buzz: Dollar Index Fades As S&P Global Flash PMI Amplifies Recession Fears

24 Jun 2022 , 10:36 AM

The dollar index slipped into negative territory after data from US indicated sharp slowdown in private sector activity. S&P Global Manufacturing PMI plunged to 52.4 (flash) in June from 57 in May, indicating a slower improvement in operating conditions across the goods producing sector. The overall upturn was the weakest for almost two years as contractions in output and new orders weighed on the headline figure. At 51.6 in June, down from 53.4 in May, the S&P Global Flash US Services Business Activity Index signalled another softening in the rate of output expansion at service providers. The pace of increase was the slowest since Januarys Omicron-induced slowdown and only modest overall. The Composite PMI fell to a five-month low of 51.2 in June 2022 from 53.6 in May. Meanwhile, Fed Chair Jerome Powell, in his second day of Congresional testimony, stressed the central banks unconditional commitment to taming inflation, even amid risks to growth. The dollar index, that measures the greenback against a basket of currencies was choppy for the entire week and is currently lower by 0.17% at 104.02. Powered by Commodity Insights