Services returned Dollar’s glaze

US services grew at fastest pace since 2007 as measured by ISM non-manufacturing PMI.

ISM non-manufacturing PMI reached 60.3 in July, just shy of 60.7, registered in 2007.

However, historically speaking US services PMI has reversed gear reaching this area, so naturally market participants and economists will be eager to see whether the trend changes this time or not.

Key highlights -

• Al sub-indices, such as Business Activity/Production, New orders, Employment, New export orders all rose at phenomenal pace.
• Prices paid index also posted rise of +0.7 percent point and rose to 53.7.

According to respondents -

• US outlook for services for rest of the year remains favorable with some sectors such as Finance and Insurance expecting around 15% annual growth.
• Businesses remain positive over volume, new orders and exports.

Dollar which lost some of its touch due to much weaker than expected GDP, found its groove back.

Euro gave up all of its post ADP gain and trading around 1.086. Yen has broken its congestion and resistance around 124.3-124.5 and currently trading at 124.9

Pound has been hold on to some of its gains and trading at 1.562 against dollar.