10:19 AM EDT, 06/03/2024 (MT Newswires) -- The US dollar fell against all major currencies in early North American trade Monday after the Institute for Supply Management Manufacturing PMI surprised on the soft side of expectations while also hinting of a further moderation of inflation in May.

EUR/USD and GBP/USD swung into the black for the session when reaching intraday highs of 1.0873 and 1.2771, respectively, while USD/JPY losses deepened and USD/CAD slipped into the red following the ISM survey's release.

The headline ISM Manufacturing PMI fell deeper into recessionary territory with a reading of 48.7 for May, down from 49.2 previously and below the consensus for a 49.8 reading. As importantly, the ISM Manufacturing prices index fell 57.0 in May from 60.9 previously, which was also below the consensus for a little changed 60.0 reading.

Fewer new orders were the greatest contributor to the decline of the headline index though production also fell alongside backlogs of orders, while the employment index ticked 2.5% higher to 51.1 as headcount grew again. Meanwhile, the prices index fell in May as commodity-driven costs continued to rise albeit at a slower pace.

The US dollar was quoted lower against all G10 currencies in the wake of the report after giving back earlier gains over major peers like the euro, British pound and Swiss franc. Meanwhile, the greenback also fell against all G20 currencies except the Mexican peso, with its deepest losses coming in relation to the Korean won and Indian rupee.