Dollar Index Futures Firm Above 105 Mark

The dollar index futures firmed up above 105 mark and is set for a weekly gain of 0.65% amid reduced expectations of a near term interest rate cut. Gains in greenback were driven by robust S&P surveys known as the Purchasing Managers Index (PMI) and encouraging weekly Jobless Claims figures, both indicative of a healthier US economy. S&P Global Manufacturing PMI for the US increased to 50.9 in May, up on a monthly basis from 50.0 in April, surpassing forecast of 50.0. Service sector PMI rose to 54.8 from 51.3 in the previous month, exceeding the prediction of 51.3 on a monthly basis. Meanwhile, US Department of Labor reports 215K employment insurance beneficiaries in the week ending May 18, lower than the estimated 220K and the prior week's figure of 223K, implying a resilient labor market. Among the basket currencies, EURUSD and GBPUSD are quoting marginally higher at $1.0820 and $1.2692 respectively.

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