Key Insights
- ISM Services PMI grew from 50.3 in May to 53.9 in June.
- S&P Global Services PMI declined from 54.9 in May to 54.4 in June.
- JOLTs Job Openings decreased from 10.1 million in April to 9.8 million in May.
On July 6, the Institute for Supply Management released ISM Services PMI report for June. The report indicated that ISM Services PMI increased from 50.3 in May to 53.9 in June, compared to analyst consensus of 51. Numbers above 50 show expansion.
The Institute for Supply Management commented: “There has been an uptick in the rate of growth for the services sector. This is due mostly to the increase in business activity, new orders and employment.”
Today, traders also had a chance to take a look at the final reading of S&P Global Services PMI report, which showed that S&P Global Services PMI declined from 54.9 in May to 54.4 in June.
JOLTs Job Openings declined from 10.1 million in April to 9.8 million in May, compared to analyst consensus of 9.94 million.
Treasury yields pulled back from session highs as traders focused on the JOLTs Job Openings data. However, the recent ADP Employment Change report has easily beaten analyst expectations, so it remains to be seen whether the pullback in yields will be sustainable. It should be noted that Treasury yields have settled near multi-month highs.
SP500 declined below the 4400 level amid a broad sell-off in global markets. Traders focus on rising yields in developed economies.
U.S. Dollar Index has settled near session highs and is trying to climb above the resistance at 103.45. The yield of 2-year Treasuries settled above the 5.05% level, providing additional support to the American currency.
Gold moved below the $1905 level as traders focused on rising Treasury yields and stronger dollar. The ADP Employment Change report served as the main catalyst for gold markets in today’s trading session.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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