Mixed results from the US services sector: the headline number is 57.1 points, lower than expected, but the employment component is at 59.6 points, the highest in nearly a decade, reflecting very strong job growth.Will we have a blockbuster jobs report on Friday?
Currencies are mixed, with each one running on its own. EUR/USD is especially tight in anticipation of tomorrow’s ECB meeting.
The new orders component is down to 59.1 points and prices paid are down to 52.1 points. Thanks to Adam Button of Forex Live for noting that the employment component is at the highest since 2005.
The ISM Non-Manufacturing PMI was expected to stand at 58.2 points, slightly down from 58.6 in September, and still reflecting strong growth. The services sector is the largest in the US, and the employment component is a big hint towards Friday’s Non-Farm Payrolls.
Before the publication, EUR/USD traded around 1.2490, USD/JPY around 114.75, GBP/USD around 1.5965, AUD/USD just under 0.86 and USD/CAD at 1.1433.
Earlier, Markit’s final services PMI for October was revised to 57.1 from 57.3 initially reported. ISM carries more weight in US markets.
And beforehand, the ADP NFP beat expectations with a rise of 230K jobs in October in the private sector.
More:
- EUR/USD: Holding 78.6% Fibo But Stay Bearish & Short – Credit Suisse
- Are US wage hikes around the corner? March hike on the cards
