Trading News for June 2, 2025
The ISM Manufacturing Purchasing Managers' Index (PMI) for May 2025 is scheduled for release today, Monday, June 2, at 10:00 a.m. Eastern Time (6:00 p.m. Dubai time).
The consensus forecast anticipates a reading of 49.3, up from April's 48.7. A PMI reading below 50 indicates contraction in the manufacturing sector, so a figure of 49.3 would suggest a continued, albeit slowing, contraction.
This data point is particularly significant given recent developments in U.S. trade policy. President Trump's announcement of increased tariffs on imported steel and aluminum, set to take effect on June 4, has heightened trade tensions, especially with China. Manufacturers may be adjusting their operations in anticipation of these changes, potentially impacting today's PMI reading.
Market participants will closely watch the release, as it provides insight into the health of the manufacturing sector and may influence expectations for future economic growth and monetary policy decisions.
Fed Chair Powell Speaks
The U.S. dollar is under pressure today, June 2, 2025, as markets brace for Federal Reserve Chair Jerome Powell's upcoming speech at 1:00 p.m. ET (9:00 p.m. Dubai time). The greenback has declined amid escalating trade tensions and investor anticipation of Powell's remarks.
President Trump's recent announcement to double tariffs on imported steel and aluminum to 50%, effective June 4, has heightened concerns over a potential trade war with China. In response, China's Commerce Ministry dismissed U.S. allegations of trade violations and promised retaliatory measures. These developments have reignited fears of slowed economic growth and rising inflation, unsettling investors.
Simultaneously, the euro has gained strength, rising over 10% against the dollar in the past four months. This appreciation is attributed to a capital shift from U.S. assets and a German fiscal boost, despite expectations of the European Central Bank implementing its eighth consecutive interest rate cut.
