The services sector is slowing down: the ISM Non-Manufacturing PMI dropped sharply to 53.9 points in July, reflecting slowing growth. The employment component is down to 53.6, implying less hiring. New orders are down as well: to 55.1 points. The prices paid component goes the other direction by rising to 55.7 points.
All in all, we are at an 11-month low for the headline figure of the largest sector in the US.
The US dollar is on the back foot. USD/JPY is getting closer to 110. EUR/USD is recapturing 1.1850. GBP/USD does not take advantage of this.
— more coming —
Factory orders are up 3% and with an upwards revision, so we have some good news on that front.
The measure for the services sector in the US was expected to show a mild drop: from 57.4 in June to 57 in July. This serves as a hint towards tomorrow’s Non-Farm Payrolls release. Factory orders were predicted to jump by 2.9% after sliding by 0.8% (before revisions).
The US dollar was mixed across the board: edging up against the euro and sliding against the yen. The pound fell on an unconvincing message from the BOE. The Australian dollar was on the back foot while the C$ was stable.
Earlier this week, the ADP jobs report met expectations and so did the ISM Manufacturing PMI. The services sector is much bigger than the manufacturing one. Markit’s final services PMI stands at 54.7 points, above the 54.2 figure originally posted.
The big question for markets remains: will the Fed raise rates once again in 2017 or are they done for now?
from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/7T2o7j-CYEw/
from Online Forex Trading Resource
View thesource article here