• US ISM Services PMI declined to 54.4 in October.
• US Dollar Index holds in positive territory slightly below 113.00.

The business activity in the US service sector continued to expand in October, albeit at a slower pace than in September with the ISM Services PMI declining to 54.4 from 56.7. This reading came in below the market expectation of 55.5.

Further details of the publication revealed that the Prices Paid Index rose to 70.7 from 68.7, the Employment Index slumped to 49.1 from 53 and the New Orders Index edged lower to 56.5 from 60.6.

Commenting on the survey's findings, "there are still challenges in hiring qualified workers and due to uncertainty regarding economic conditions, some companies are holding off on backfilling open positions," said  Anthony Nieves, Chair of the Institute for Supply Management Services Business Survey Committee. "Supply chain and logistical issues persist but are not as encumbering as they were earlier in the year."

Market reaction

This report doesn't seem to be having a significant impact on the US Dollar's performance against its major rivals. As of writing, the US Dollar Index was up 0.7% on the day at 112.90.