Economic activity in the US service sector remained unchanged in January, with the ISM Services PMI holding steady at 53.8. The print, however, came in above analysts’ expectations of 53.5.
Further poll results found that the Prices Paid Index, a crucial barometer of inflation, ticked higher to 66.6 from 65.1 (revised from 64.3), while the Employment Index receded to 50.3 from 51.7 (revised from 52.0), indicating a humble pullback in labour market conditions in the service sector. Finally, the New Orders Index weakened to 53.1 from 56.5 (revised from 57.9).
Market reaction
The Greenback remains slightly bid following the release, as investors continue to digest the latest ADP report. That said, the US Dollar Index (DXY) reverses
Tuesday’s losses and revisits the 97.50 region, maintaining the weekly recovery well in place.
