Us Ism Services Pmi Jumps

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Us Ism Services Pmi Jumps

Us Ism Services Pmi Jumps To 51.4 In July

An improvement was seen in the US services sector, according to July's reading of the US ISM PMI. The data showed that the US services sector has once again returned back into the expansion zone as July's reading was above 50.

According to the ISM (Institute for Supply Management), the services PMI has jumped from 48.8 in June to around 51.0 in July. What's more impressive is that July's services PMI reading was also above the market's forecast.

Services Pmi Lifts The Dxy Higher

The data also revealed that the employment index has touched 51.1, a lot higher than the forecasts. Meanwhile, the new orders index has also jumped from 47.3 to around 52.4, showing a broader positive sentiment. The prices component which is also a part of the release also turned higher towards 57.0 in July.

Following the release of the US ISM Services PMI for July, the Dollar index (DXY) staged a mild rebound and turned higher on the first day of the week. Although the DXY has turned higher, it is still hovering near the 103.00 support. This is a sign that the long-term trend is still titled against the US Dollar.

The US ISM Services PMI enabled the DXY to rebound near the 102.00s and is now present near the 102.55. On the way up, the next resistance is seen in the 102.90 - 103.00 area. Meanwhile, the next support can be found at 102.00 and then at 101.70.

Although the services PMI has helped to offset the sour market mood, it will be short-lived at best. The bigger picture is that the US economy is on the brink of a recession, which could send the US Dollar lower.

If the US officially enters into a recession fear, it would also affect the services and the manufacturing sector. Also, the services sector of the USA usually remains strong. So, it is the manufacturing sector that needs more attention and a change of pace.

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