• The April US ISM Manufacturing PMI was weaker than expected at 55.4, with drops across the major sub-indices. 
• FX markets did not react to the latest data.  

The headline ISM Manufacturing Purchasing Manager’s Index (PMI) fell to 55.4 in April from 57.1 in March, below expectations for a small rise to 57.6, according to the latest release by the Institute for Supply Management (ISM). That marked the lowest reading since September 2020. 

Subindices:

• The Prices Paid Index fell a little to 84.6 from 87.1 in March. 
• The New Orders Index fell a little to 53.5 from 53.8, the lowest reading since May 2020. 
• The Employment Index dropped to 50.9 from 56.3, larger than the expected drop tp 56.0. 

Market Reaction

Currency markets didn’t react much to the latest slightly softer than expected US ISM Manufacturing PMI survey data. The DXY continues to trade in the mid-103.00s, a little higher on the day and eyeing last week’s multi-month highs near 104.00.