🇺🇸Cable FX Macro Weekly Note: ISM June Mfg PMI

**As seen in Risk In The Week report, subscribe at cablefxm.co.uk/reports

The May manufacturing gauge rose to 56.1 from the previous 55.4, this was higher than the consensus of 54.5. The ISM was one of the few U.S. figures beating market expectations for the last 8 weeks. As a reminder, U.S. CESI made a new cycle low this week as it reached -70, levels not seen since May 2020. Later, the docket brought the ISM services index which slowed to 55.9, missing market consensus of 56.5. The May manufacturing index saw prices decline to 82.2 from 84.6, back then, this was taken as a positive for the inflation outlook. The employment index fell into contraction for the first time since November 2020, so it will be interesting to see if this shows any signs of recovery during June. The desk at Scotiabank said regional surveys brought mixed signs, as Philly Fed and Kansas City Fed gauges deteriorated but the Empire State figure improved. They note that Tuesday’s Richmond Fed release could bring further colour to ISM expectations, it came below expectations at -11, prev. -9.