Disappointing news from the US: the services sector expansion has slowed significantly in October with the ISM Non-Manufacturing PMI falling to 55.9 points, worse than expected. This includes a fall in the employment component from 59.2 to 55 points, indicating a weaker NFP tomorrow.Â
The dollar is sliding, with EUR/USD moving higher after a short pause.
Factory orders beat with a a rise of 1.5% instead of 1.4% and small upwards revision, but this is overshadowed by the PMI.
In the meantime, Janet Yellen prepared remarked consist of a repeat of yesterday’s appearance. She says that a delay in a rate hike risks an abrupt move later on.
The ISM Non-Manufacturing PMI was expected to slide to 58 points in November after an excellent 59.1 points in October. Factory orders carried expectations for a rise of 1.4% after -1% beforehand (and before revisions). At the same time, Janet Yellen begins her testimony.
Towards the release, EUR/USD traded at a high of 1.08 following the Draghi disappointment.
Earlier, Markit’s services PMI was revised to the downside. ADP NFP was positive yesterday.
Yesterday, Yellen seemed to cement a rate hike in December while talking about a gradual move afterwards. Her colleagues Lockhart and Williams repeated the same stance. Now she is in an official testimony on Capitol Hill.
See how to trade the NFP with EUR/USD
