The U.S. Dollar rallied after a report showed that China’s PMI Manufacturing rose for a fourth straight month in June to 53.2 vs 53.1. Against the Japanese Yen, the currency rallied over 35 pips within seconds of the release of the news. The news may have sparked speculation that a recovering U.S. economy may be floating around the corner. In fact, New Export Orders for China, according to the PMI, rose 2.6% in June. Since the U.S. is China’s largest buyer of exports, this may have signaled that American consumption from abroad may have increased in the month. Such developments could buoy interest rate expectations as demand pressure boosts the inflation outlook within the U.S.