Good news for the US economy. The services sector is expanding at a very rapid pace according to ISM. The break of the psychological level of 60 is important. For the Non-Farm Payrolls report on Friday, good news comes from the employment component: it jumped all the way to 59.6 points from 52.7 in July.
The US dollar is rising, recovering earlier losses. EUR/USD is below 1.0880 once again. GBP/USD is at 1.5615 and USD/JPY is getting closer to 125 with a high of 124.86 so far. AUD/USD is down to 0.7340, NZD/USD at 0.6520 and USD/CAD is at 1.3175.
New orders, which provide insight into the future, leaped to an impressive score of 63.8 points from 58.3 beforehand (which was also strong). MArkit’s final services PMI for the US economy was upgraded to 55.7 points in the final read.
Earlier, the ADP NFP disappointed with a gain of only 185K jobs in July, below the closely watched 200K level and below expectations for 216K. In addition, last month’s number was revised to the downside: 229K.
But all in all, the markets are getting ready for a rate hike in September, encouraged in part by Lockhart’s hawkish comments.
We still have jobless claims awaiting us tomorrow, but most of the data towards Friday’s big event is out. Stay tuned for a preview for the NFP.
More: USD Moves Higher, Looking At EURUSD & USDCHF – Elliott Wave Analysis
