BREAKING: USD gains as services ISM hits highest since 1997

A pack of data from the United States was released this afternoon. Revision of the services PMI index for October showed a slightly higher reading than flash release but the biggest surprise came at 2:00 pm GMT, when ISM data was released. Services ISM index jumped from 61.9 to 66.7, while the market expects a more or less unchanged reading. This is the highest reading since 1997! A big jump was noted in the prices paid index. Factory orders data for September that was released simultaneously also showed better-than-expected readings.

• Services PMI (final): 58.7 vs 58.2 flash (54.9 prior)

• Services ISM headline: 66.7 vs 62.0 expected (61.9 prior)

• Services ISM employment index: 51.6 vs 53.0 prior

• Services ISM prices paid index: 82.9 vs 77.5 prior

• Factory orders: +0.2% MoM vs -0.1% MoM expected (1.2% MoM prior)

• Factory orders ex. Transportation: 0.7% MoM vs 0.0% MoM expected (0.5% MoM prior)

The US dollar strengthened following the release of upbeat data. USDJPY jumped and is attempting to make a break above the resistance zone at 114.00. In case a break is delivered, the next target for bulls would be the recent local high near 114.40.

Source: xStation5