Business activity in the US private sector expanded at a softening pace in early June with S&P Global Composite PMI falling to 53 from 54.3 in May. This reading came in worse than the market expectation of 54.4.

S&P Global Manufacturing PMI slumped to 46.3 from 48.3 in the same period and Services PMI edged lower to 54.1.

Commenting on the survey's findings, "the overall rate of expansion of business activity in the US remained robust in June, consistent with GDP rising at a rate of 1.7% to put second quarter growth in the region of 2%," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

"The question remains as to how resilient service sector growth can be in the face of the manufacturing decline and the lagged effect of prior rate hikes," Williamson further elaborated. "Any further rate hikes will of course have a further dampening effect on this sector which is especially susceptible to changes in borrowing costs."

Market reaction

The US Dollar (USD) preserves its strength after the PMI data. As of writing, the US Dollar Index, which tracks the USD's performance against a basket of six major currencies, was up 0.5% on the day at 102.90.

Source : FXstreet