Red Hot Services PMI Data Reflects the Strength of the US’s Largest Sector
US Non-Manufacturing PMI Data Beats Expectations, Marking New High
All 18 services industries once again experienced growth in November as services PMI comes in at 69.1% vs the forecasted figure of 65.
This month’s data print comes under particular scrutiny as last month witnessed the highest reading this year indicating strong performance in the services sector, the biggest sector in the US economy.
Immediate Response in US dollar index
There was little response to the dollar – as indicated by the dollar benchmark, the US dollar index. Trading continued the intra-day uptrend marking higher highs and higher lows.
US Dollar Index Chart (1 Min)
The data comes hot off the heels of the non-farm payroll disappointment that recorded a worse than expected figure of 210k jobs added in the month of November compared to the estimated figure of 550k. Nevertheless, the number is still positive, indicating that the labor market is still headed in the right direction particularly at a time when the Fed has changed its tone on the so-called ‘transitory’ nature of inflation in the wake of consistently higher prices.
Written by Richard Snow, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.