- ISM non-manufacturing hits highest level since mid-2005
- Reading of 60.1 vs 58.5 exp and 59.8 prior
- EURUSD falls to lowest level of the day
A strong rise in the ISM non-manufacturing PMI has more than offset a softer NFP report as far as the markets are concerned with the greenback on the rise and the EURUSD hitting its lowest level of the day. A print of 60.1 is highly impressive and is in fact the strongest headline number since 2005.
The ISM releases are seen by many as leading indicators of the US economy and after the miss seen in the Manufacturing reading earlier this week, today’s number has gone some way to reaffirming that the world’s largest economy is firing on close to all cylinders.
A strong rise in the services reading has took the edge off a disappointing manufacturing print on Wednesday. Source: XTB Macrobond
Following Wednesday’s disappointing manufacturing number today’s earlier release, the October NFP was also something of a disappointment. Despite a strong bounce back in the headline after the sharp drop seen in September due to the hurricanes, the NFP still missed consensus forecasts and saw average earnings come in flat.
However, the market reaction was relatively muted with the drop seen in the US dollar short lived. The EURUSD exhibits this nicely with a swift spike higher on NFP subsequently reversing and the more recent ISM release has seen the market drop to its lowest level of the day.
The EURUSD has hit its lowest level of the day after the ISM release with the rise seen following NFP proving to be short-lived. Source: xStation