The US services sector is on a roll: the ISM Non-Manufacturing PMI beat all expectations with a score of 57.2 points, far better than 55.4 expected. This is the biggest sector in the US. The score is the best in over a year.
The USD does not seem to take advantage of this, continuing its wind-down from the Trump-rally.
Earlier, Markit’s final services PMI stood at 54.6 points, far lower than ISM’s more important figure.
The ISM Non-Manufacturing PMI was expected to stand at 55.4 in November after 54.8 in October. This time, the indicator does not serve as a hint towards the Non-Farm Payrolls report. We already know that the US economy gained 178K but saw wages dip. However, the report for the services sector stands on its own.
The dollar had a mixed day: rising against the yen but on the back-foot against others. EUR/USD made more than a rebound from the post-Italian referendum lows. Renzi was defeated, will quit, but the rout did not last the day. Eventually, EUR/USD topped 1.07 after hitting the lows of 1.0510.
GBP/USD traded above 1.27 as the Supreme Court continued discussing who should trigger Article 50. It seems that parliament will have its say.
USD/JPY bounced back above 114 and reached 114.35 ahead of the publication. The trend is quite strong there.
USD/CAD was relatively stable at 1.3295 as oil prices continued pushing higher following the OPEC Accord.
AUD/USD was also steady around 0.7440. On the other hand, NZD/USD was falling, following the announcement that PM John Key will not be running for another term.
More: What’s next for the US dollar? – Barclays.
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