US Dollar Index Extends Decline Amid Weakening Economic Data(June 3)

The US Dollar Index (DXY) continued its downward trajectory on Monday, approaching the 104.15 level, primarily influenced by the release of the Institute of Supply Management (ISM) PMI report for May.

The data prompted a decrease in US Treasury yields and a slight rise in the probability of a Federal Reserve (Fed) interest rate cut in September.

Following the impact of the ISM PMI report, market focus has now shifted to labor market data, particularly the eagerly anticipated Nonfarm Payrolls report for May. Investors are closely monitoring this report to gather additional insights into the state of the US economy.