A small disappointment for the US services sector: 53.1 points. The ISM Non-Manufacturing purchasing managers’ index was expected to climb from 51.6 to 53.5 points in March. The services sector is the biggest in the US. The employment component is a great hint to the Non-Farm Payrolls report tomorrow. And here we have good news: the employment component rises to 53.6 from 47.5 points beforehand.
The US dollar was stronger towards the release: EUR/USD was down to 1.3715, GBP/USD at 1.6580 and USD/JPY just above 104. — updates coming
Also the new orders component is on the rise to 53.4 from 51.3 points. Prices paid show no signs of inflation with a rise from 53.7 to 58.3 reflecting stronger growth in this volatile component.
Earlier, Markit revised its services PMI for March at 55.3 points. More importantly, jobless claims disappointed with a rise from 310K to 326K, above 319K expected. The US trade deficit also disappointed with a climb from 38.3 to 42.3 billion dollars.
The other ISM PMI was not that good. The ISM Manufacturing PMI, released on Tuesday, slightly disappointed with 53.7 points. The employment component hit 51.1 points, reflecting very slow growth.
The most important event is tomorrow: see how to trade the Non-Farm Payrolls with EUR/USD.Get the 5 most predictable currency pairs