Forex News – Dollar rises following Chicago PMI business barometer

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The Chicago PMI was released in the US today showing that business activity in the Midwest region of the country grew more than expected this month, helped by a jump new orders.

The Institute for Supply Management-Chicago business barometer rose to 61.1 in June, The reading was 56.6 in May and economists had forecast a June reading of 54.

The index is a leading indicator of economic health since businesses react quickly to market conditions. It is based on a level of a diffusion index compiled on surveyed purchasing managers in the Chicago area.

The employment component of the index slipped to 58.7, from 60.8 in May, but new orders surged, to 61.2, from 53.5. A reading above 50 indicates expansion in the regional economy.

Following the data, the Dollar soared against the Japanese yen, with USDJPY jumping to 80.84 from 80.46. The greenback also rose against the Swiss Franc, with USDCHF peaking at 0.8463 from 0.8396.