Dollar Soars on Strong PMI Data as EUR/USD Slumps

The U.S. Dollar Index has rebounded as traders reacted to the better-than-expected ISM Manufacturing PMI report, which showed a rise from 53.3 in June to 55.6 in July, beating analyst forecasts of 54.

ISM Manufacturing Employment also increased from 49.7 to 52.8, exceeding expectations of 49.8. Numbers above 50 indicate expansion.

The U.S. Dollar Index is trying to settle above the resistance level at 99.85-100.00, with a potential move towards the next resistance level in the 100.50-100.65 range if successful.

In contrast, EUR/USD pulled back as traders reacted to disappointing Retail Sales from Germany, which showed a decrease of -1.1% month-over-month in June, compared to analyst forecasts of -0.5%.