US ISM Services PMI improves to 50.8 in June vs. 50.5 expected

• ISM Services PMI for June came in better than expected.
• US Dollar Index stays in positive territory near 97.00.

The business activity in the US services sector expanded at a modest pace in June, with the Institute for Supply Management's (ISM) Services Purchasing Managers' Index (PMI) rising to 50.8 from 49.9 in May. This reading came in better than the market expectation of 50.5.

The Employment Index of the PMI survey declined to 47.2 from 50.7, reflecting a decrease in the service sector's payrolls in June. In this period, the Prices Paid Index retreated to 67.5 from 68.7, while the New Orders Index rose to 51.3 from 46.4.

Market reaction

The US Dollar Index clings to modest daily gains at around 97.00 following the PMI data.