The economy was strong in Q2, and looks to be extending deep into Q3. The latest Manufacturing PMI from the Institute for Supply Management (ISM) came in at 59.0, up fro the 57.1 in July, beating forecasts for a reading around 57.0. ISM Manufacturing PMI since 2010 (source: forexfactory.com) The 59.0 reading is the strongest this year, and strongest since the 60.4 print for April 2011. Manufacturing has been steadily improving in 2014 since that Q1 snag. The USD continues to be strong. The US Dollar Index has been making fresh highs on the year, and started this week extending to another new one, at 83.00. After consolidating during the European session, the USDX looks ready to continue its uptrend in the US session, especially after another strong data point from manufacturing. The next key resistance above the 83.00 handle will be the highs from 2013 at 84.50-84.75USDX 1H Chart 9/2