USD Sees Strong Gains on Economic Data

The U.S. Dollar Index (DXY), which measures the performance of the USD against a basket of six major currencies, registered strong gains on Monday.

The gains of the USD came on the back of positive economic data that reflects an improvement in the American manufacturing sector and the US economy at large, signaling the recovery from the impacts of the COVID-19 crisis.

Manufacturing activity in the United States expanded during July, as the Institute for Supply Management’s (ISM) industrial activity index registered 54.2 in July, compared with 52.6 in June, its best improvement since March 2019.

In addition, the seasonally adjusted IHS Markit U.S. Manufacturing Purchasing Managers’ Index (PMI) recorded 50.9 in July, up from 49.8 in June.

DXY is up by 0.27% at 93.60, after closing last week at 93.35.

The index moved throughout the day moved between 93.32 and 93.99.