The S&P Global PMI headline came out at 54.5 versus 50 expected and above the previous reading of 53.4. However the manufacturing component ticked lower which could add fuel to the USD strength implying to recession fears.
The initial market reaction was downwards for the USD implying relief from recession fears however i expect after revising the data the manufacturing component could imply for market investors recessionary fears and the higher PMI headline will add on the possibility of another rate hike in June.
On a technical level, the DXY pulled back and is now flirting with the Fibonacci 70.5% retracement level on the 1H time frame as of the time of writing. Moreover the market sentiment is still risk-off S&P Futures -0.3%, DXY +0.15% and the US10 Year Yields +0.11% aligning with the fundamental view. With this view i favor Silver to be one of the best runners for today.
Trading these setups require a full fledge analysis, patience and good risk management.
