US Dollar Index (DXY) steadies right below the 100.00 psychological level
- The US Dollar Index remains bid right below the 100.00 psychological level.
- A hawkish Fed and the US-China trade deal have provided additional support to the US Dollar.
- The main focus on Monday will be on October's US manufacturing activity data.
The US Dollar remains buoyed by the hawkish message delivered by the Federal Reserve (Fed) after its October monetary policy meeting. The Index, which measures the value of the Greenback against a basket of currencies, appreciated more than 1% since last week's meeting, to consolidate around 99.85 on Monday's European session.
The US central bank cut interest rates by 25 basis points as widely expected last week. Chairman Jerome Powell, however, shocked investors, highlighting the challenges of setting monetary policy in a context of growing inflation and a stalled labour market, and warning about excessive confidence in further monetary easing this year.
Investors have pared back their bets on a December rate cut to 67% from a chance a91% chance ahead of last week's meeting, according to data released by the CME's Fed Watch Tool. This, coupled with the trade framework sealed by US President Donald Trump and the Chinese leader Xi Jinping, is underpinning support for the US Dollar.
In the economic calendar, the focus today will be on manufacturing activity data. The S&P Global Manufacturing PMI is expected to confirm that the sector's activity accelerated to 52.2 in October from 52.0 in September, while the ISM Manufacturing PMI is forecast to reveal a further contraction,, with a 49.2 reading, from the previous month's 49.1 print, with the prices subindex showing ithat inflationary pressures increased to; 62.6 from 61.9 in the previous month.
Economic Indicator
S&P Global Manufacturing PMI
The S&P Global Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally declining, which is seen as bearish for USD.
Read more.Next release: Mon Nov 03, 2025 14:45
Frequency: Monthly
Consensus: 52.2
Previous: 52.2
Source: S&P Global
Economic Indicator
ISM Manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The indicator is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. Survey responses reflect the change, if any, in the current month compared to the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). A reading below 50 signals that factory activity is generally declining, which is seen as bearish for USD.
Read more.Next release: Mon Nov 03, 2025 15:00
Frequency: Monthly
Consensus: 49.2
Previous: 49.1
Source: Institute for Supply Management
The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) provides a reliable outlook on the state of the US manufacturing sector. A reading above 50 suggests that the business activity expanded during the survey period and vice versa. PMIs are considered to be leading indicators and could signal a shift in the economic cycle. Stronger-than-expected prints usually have a positive impact on the USD. In addition to the headline PMI, the Employment Index and the Prices Paid Index numbers are watched closely as they shine a light on the labour market and inflation.
,
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
