USD and S&P500 Jump Higher on Upbeat ISM Services Index Report
February ISM Services Index - Talking Points:
- February’s ISM Non-Manufacturing Index crossed the wires at 59.7 and crushed estimates of 57.4 for the period
- The Services NMI report looks to improve sentiment from yesterday’s risk selloff as bulls and bears wrestle over the market’s next direction
- Find out How Forex Traders Use ISM Data to exploit potential currency price movements. Looking for other ways to improve your trading strategy? Read up on tips from DailyFX analysts on How to Trade the News
Economic growth in the US continues to portray a mixed signal as the services sector grew at its fastest pace since September 2017. The metric for February came in at 59.7, far above Bloomberg’s consensus of 57.4 and January’s weak reading of 56.7. The USD and S&P500 are pushing higher immediately following the positive data reading.
ISM NON-MANUFACTURING INDEX: MONTHLY TIME FRAME (JANUARY 2016 TO FEBRUARY 2019)
Business activity, new orders, order backlog, new export orders expanded at a faster rate than previously observed while growth in employment and prices increased at a slower pace. Although the inventories component of the Services Index moved back into expansion territory from 49.0 to 51.0, imports slipped into contraction with the segment slowing from 52.0 to 48.5. Readings above 50 indicates an expansion while readings below 50 suggests a contraction.
US DOLLAR CURRENCY PRICE CHART: 5-MINUTE TIME FRAME (MARCH 05, 2019 INTRADAY)
According to the report, all 18 industries reported growth which was led by transportation/warehousing, management of companies/support services and wholesale trade. Accommodation/food services, arts/entertainment/recreation and retail trade lagged the group.
US S&P500 INDEX PRICE CHART: 5-MINUTE TIME FRAME (MARCH 05, 2019 INTRADAY)
The Services NMI beat this morning counters the weak ISM Manufacturing report released last Friday which added to the mounting evidence of a slowing expansion.
Written by Rich Dvorak, Junior Analyst for DailyFX
Follow on Twitter @RichDvorakFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.