Yet another number within expectations: the ISM Non-Manufacturing PMI rose to 56.9 points, marginally above 56.5 expected. Perhaps more importantly, the employment component made a bounce back and rose to 56.4 points, after 51.6 seen last time. This is certainly good news towards Friday’s NFP.
EUR/USD remains under pressure after already falling to the 1.10 handle. The US dollar is marching forward.
Adding fuel to the fire, the head of ISM says that gains in employment are driving the services index.
Can we expect another blockbuster NFP on Friday?
The bad weather did not impact supply, but port delays in the west coast area are an issue and a financial burden.
Earlier in the week, the ISM Manufacturing PMI came out worse than expected, including the employment component. However, the ADP report came out as expected at 212K, with a significant upwards revision to 250K.
The US Non-Manufacturing PMI (services sector) was expected to stand at 56.5 points in February, very close to January.
In other figures, the new orders component dropped from 59.5 to 56.7 points and prices paid rose from 45.5 to 49.7 points.
So while the new orders component is on the slide, and it is a forward looking one, the employment component is promising for the shorter term: the NFP report on Friday which feeds into the March Fed meeting.
Opinion:Â Get Ready For The Next Leg Lower In EUR/USD Coming Weeks
In this week’s podcast, we cover Yellen & the hike, AUD & CAD rate previews, Jobless claims vs. USD & Greek back burner
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