ISM Non-Manufacturing PMI beats with 57.5, but weak employment
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ISM Non-Manufacturing PMI beats with 57.5, but weak employment

The US  services sector is doing well, growing at an accelerated pace. ISM’s non-manufacturing PMI beats expectations with a score of 57.5 points.  Orders are at the highest since 2005. Also prices paid are up to 57.6 from 53.5 beforehand. However, the employment component remains subdued at 51.4, similar to 51.6 last time. This does not bode well for the NFP on Friday.

The US dollar ticks higher with USD/JPY reaching 112.47.

The ISM Non-Manufacturing PMI for April was expected to  advance to 55.8 points from 55.2 in March. Any score above 50 reflects expansion. The employment component is eyed as a hint towards Friday’s Non-Farm Payrolls report.

The US dollar was looking firm against the Japanese yen and against the Aussie, while mostly unchanged when looking at other currencies.

Earlier, the ADP report for private sector jobs came out at 177K, within the 175K increase that was expected.  The ADP number did not correlate with the official BLS number for the private sector last month. Markit’s final services PMI  was upgraded to 53.1 from 52.5 originally reported.

The big event for today is the Fed decision. While no change is expected, markets will be watching every word in the statement for a hint about June. Recent economic data has not been upbeat. Will the Fed react?

See  Fed preview: reasons to be worried – 3 scenarios

Apart from the FOMC and the Non-Farm Payrolls, markets are looking at the second round of the French elections. Macron continues commanding a 60% lead against Le Pen’s 40%.

Tonight, these two will face each other in a televised debate.

French elections – all the updates in one place

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.