The US ISM Services PMI came in above market expectations, while prices paid reportedly rose and employment growth remained sluggish, with dollar selling continuing.
The US ISM Services PMI reportedly came in above market expectations, suggesting a favorable reading for the economic indicator. The indicator, which reflects overall conditions in the non-manufacturing sector, was reported to have improved from the previous reading. Investor attention turned to demand trends, particularly in the services sector, and the outlook for the economy.
At the same time, prices paid, which reflect procurement costs, reportedly rose, drawing attention to the impact on corporate cost structures. Employment growth was described as weak, prompting more cautious views on the strength of the labor market. These developments led to market discussion of the combination of the pace of demand recovery and inflationary pressure.
Against this backdrop, views that dollar selling would continue became more widespread in the market, and the moves affected the foreign exchange market and related assets, according to reports. Many expect employment indicators and price trends to be key in subsequent updates.