US ISM non-manufacturing PMI higher than expected, but employment index lower
The second tranche of US data sees the ISM non-manufacturing index coming in higher than expected at 60.7 in Nov, higher than expectations and also higher than Oct which was at 60.3. Business activity was also a beat on forecasts, though marginally so, with a 62.2 reading just 0.2 above the median consensus.
We did, however, see the employment index lower 58.4 vs 59.7 in Oct, and this could drag on expectations a little in the payrolls report tomorrow. New orders were higher than Oct at 62.5 vs 61.5, with prices paid also up from 61.7 to 64.3.
Against this, we also saw a 2.1% drop in Oct factory orders, which takes the shine off the survey data, so on balance, we are seeing little impact on the USD as markets are keeping close tabs on the US stock markets.
USD/JPY has tested lower, though key support at 112.30 is holding strong and refusing to give way. EUR/USD is also trying to push above 1.1400 again, yet comes up against fresh USD demand as we also see in Cable ahead of 1.2800.