US Dollar Rises on Upbeat Services PMI
ISM Services Talking Points:
- ISM Services Crosses the wires at 57.3
- Coronavirus concerning for supply chains
- New orders and employment continue to improve
ISM Services PMI crossed the wires this morning at 57.3, beating expectations of 54.8. The strong figure sent the US Dollar higher in morning trading as the reported showed the services sector in the US economy remains strong. New orders and employment both contributed strong gains to the index, coming in at 63.1 and 55.6, respectively. Supplier deliveries increased, but some participants note that suppliers are having trouble pacing with the increased demand.
US Dollar Basket (1-Min Chart)
Fears of the coronavirus were reflected in the report with survey participants noting increased lead times for materials due to the virus spread. Business activity printed 57.8 for February, indicating growth, although it is slower than the pace from the month before. Supplier deliveries increased, but some participants note that suppliers are having trouble pacing with the increased demand.
--Written by Thomas Westwater, Intern Analyst for DailyFX.com
Contact and follow Thomas on Twitter @FxWestwater
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