US Dollar Enters Consolidation Mode After May's PMI Report

The US dollar is trading sideways today after S&P Global released the preliminary May Manufacturing and Services PMI reports. This marks a significant shift as the U.S. dollar enters consolidation phase after May's PMI report, signaling a potential period of indecision in the market. USD, USdollar, and the Dollar are all currently reflecting this uncertain environment.

The flash estimates PMI reports revealed concerning data, particularly in the United States, with data showing the S&P Global's flash U.S. Composite PMI Output Index falling to 50.4 this month, the lowest since September 2025, compared with. This weaker-than-expected performance has contributed to the current consolidation.

While NEW YORK saw the dollar rise modestly against major currencies on Monday, as investors braced for data on U.S. inflation and retail sales this week for clues on when the..., this initial upward movement appears to be fading. The U.S. Dollar (USD) Index seems to have entered a consolidation phase early Thursday after climbing to a weekly high near 105.00 on Wednesday. S&P Global will continue to monitor the situation closely.

Concerns about the U.S. economic outlook are growing, especially following the recent March ISM PMI which fell to 49.0, confirming contraction in U.S. manufacturing and heightening growth concerns for dollar bulls. The U.S. Dollar Index (DXY) is trading slightly, reflecting this caution. The performance of the SP500 and other related financial instruments will likely influence the future direction of the Currency.