The US services sector was expected to show solid growth in May, similar to the one in April, around 55.2 points. The employment component advanced to 52.4 from 51.3 beforehand. This is a positive sign for the Non-Farm Payrolls on Friday.
The US dollar is stronger after the publication, recovering from the weak ADP number
EUR/USD is now at 1.3609, sliding lower within the narrow range towards the ECB event. GBP/USD is under 1.6750, the level which is likes and USD/JPY is on the rise again to 102.60.
New orders climbed to 60.5, business activity to 62.1 and prices to 61.4 points. Scores above 60 reflect very strong growth. 50 separates contraction and growth.
Also Markit’s trending services PMI showed economic strength: the final figure stands 58.1 points in May. The initial flash figure stood on 58.4 points. Nevertheless, it is a positive absolute number.
Earlier, the ADP report for the private sector painted a different picture: the US gained only 179K private sector jobs in May according to the company.Get the 5 most predictable currency pairs