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  • ISM Services PMI rose less than expected in October.
  • US Dollar Index clings to modest daily gains near mid-93.00s.

The economic activity in the US’ service sector expanded at a slightly softer pace in October than it did in September with the Institute for Supply Management’s (ISM) Services PMI edging lower to 56.6 from 57.8. This reading missed the market expectation of 57.5.

Further details of the publication revealed that the New Orders Index fell to 58.8 from 61.5, the Employment Index declined to 50.1 from 51.8 and the Prices Paid Index rose to 63.9 from 59.

Commenting on the data, “there has been a slight pull back in the rate of growth in the Services Sector in the month of October,” said Anthony Nieves, Chair of the Institute for Supply Management Services Business Survey Committee. “Respondents’ comments are cautiously optimistic about business conditions and the economy. There is a degree of uncertainty due to the pandemic, capacity constraints, logistics and the elections.”

Market reaction

The US Dollar Index edged lower after the data and was last seen gaining 0.14% on the day at 93.47.