ISM Non-Manufacturing PMI Leaps To 59.8 – USD Follows
US data continues beating expectations. The services sector enjoys robust growth according to ISM’s survey. The ISM Non-Manufacturing PMI jumps to 59.8, far better than 55.5 expected and 55.3 seen in August. This is the best figure since 2005. The employment component is only marginally higher: 56.8 against 56.2 beforehand. However, new orders jump to 63 and prices paid to 66.3. Scores above 60 represent “steaming hot” conditions.
The US dollar moves higher across the board.
- EUR/USD is down under 1.1750, also due to the Catalan crisis.
- GBP/USD is down to 1.3260 after having recovered earlier on the upbeat UK services PMI.
- USD/JPY is getting closer to 113 once again, now at 112.80.
- USD/CAD is edging closer to 1.25.
- AUD/USD is down to 0.7840.
Earlier, Markit’s parallel measure advanced from 55.1 to 55.3 in the final read. ISM carries more weight.
The positive data joins a slightly better than expected gain in jobs according to ADP. The ISM Manufacturing PMI also beat expectations.
All these numbers will certainly raise expectations for Friday´s jobs report, and these expectations start from a low place. The damage inflicted by the hurricanes resulted in disruption to actual jobs and also to measure them.
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