US ISM Services PMI declines to 52.8 in January vs. 54.3 expected

• US ISM Services PMI in the US declined slightly to begin the new year. 
• The US Dollar Index stays deep in negative territory below 107.50.

The economic activity in the US service sector continued to expand in January, albeit at a softer pace than in December, with the ISM Services PMI declining to 52.8 from 54. This reading came in below the market expectation of 54.3.

Other details of the report showed that the Prices Paid Index, the inflation component, dropped to 60.4 from 64.4, while the Employment Index edged higher to 52.3 from 51.3.

Market reaction

The US Dollar stays under selling pressure following these data. At the time of press, the US Dollar Index was down 0.6% on the day at 107.35.