The ISM services PMI report registered a rise in January to 58.7, with the market consensus being for a reading of 58.6. In December the data was revised up from 57.2 to 57.7. It is the highest reading in two years.
The new order rate of the indicator climbed from 58 to 58.7, while that of job jumped from 48.7 to 55.2. The price paid index fell from 64.4 to 64.2.
A better-than-expected reading had previously been seen in ADP’s private sector employment report and an upward revision in January’s PMI Markit for the services sector. These data did not necessarily strengthen the dollar, although they did raise Treasury yields. Friday will be the turn of the employment report.