ISM Services PMI Exceeds Expectations, U.S. Dollar Tests Session Lows

Key Insights

• ISM Services PMI grew from 51.2 to 51.9.
• S&P Global Services PMI increased from 52.6 to 53.6.
• U.S. Dollar Index tested support at 101.50.

ISM Services PMI Stays Above The 50 Level

On May 3, the Institute for Supply Management released ISM Services PMI report, which indicated that ISM Services PMI increased from 51.2 in March to 51.9 in April, compared to analyst consensus of 51.8. Numbers above 50 show expansion.

ISM commented: “The has been a slight uptick in the rate of growth for the services sector, due mostly to the increase in new orders and ongoing improvements in both capacity and supply logistics.”

Today, traders also had a chance to take a look at the final reading of S&P Global Services PMI report, which indicated that S&P Global Services PMI grew from 52.6 in March to 53.6 in April.

U.S. Dollar Is Moving Lower Ahead Of Fed Decision

U.S. Dollar Index tested support at 101.50 after the release of the ISM Services PMI report. Traders are also focused on the pullback in Treasury yields, which is bearish for the American currency.

SP500 has settled near session highs at 4130 as traders are somewhat bullish ahead of the Fed decision, which will be released today.

Gold is mostly flat near the $2015 level. Traders are not ready for big moves ahead of the Fed’s comments, which will have a big impact on gold market dynamics.

For a look at all of today’s economic events, check out our economic calendar.