BREAKING: US ISM services PMI much lower than expected. EURUSD rallies almost 0.6%

US ISM Services came in: 48.8 vs 52.6 exp. and 53.8 previously

• US ISM Services Price Paid: 56.3 vs 56.7 exp and 58.1 previously
• US ISM Services Employment: 46.1 vs 49 exp and 47.1 previously
• US ISM Services New Orders: 47.3 vs 53.6 exp and 54.1 previously
• US Factory orders dropped by -0.5% vs 0.2% exp. and 0.7% previously

S&P PMI for June came in 55.3 vs 55.1 exp. and 55.3 previously

After much weaker than expected US data, ISM chair, Miller, pointed out that June Services PMI indicates the overall US economy is contracting for the first time in 17 months. However, prices paid index came in relatively high, signalling that price pressure may be high, even if overall market conditions are weakening at a faster pace. On the other hand, the drop from 58.1 in May to 56.3 now may be seen as a satisfactory sign, that prices pressure will finally cool off. US dollar loses after todays data, with EURUSD rallying above 1.081 level.

Source: ISM, Macrobond, XTB Research

Source: xStation5