• ISM Services PMI climbed to 51.4 in July, returning to the expansion territory.
• US Dollar Index rebounds from the vicinty of 102.00.

The business activity in the US service sector surprised to the upside and returned to the expansion zone (above the 50 threshold) in July, according to the Institute for Supply Management (ISM). The reading came in above consensus at 51.0 and reversed June’s 48.8 print.

The Employment Index of the survey also came in above estimates at 51.1 (from 46.1), while the New Orders Index rose to 52.4 from 47.3. Finally, the Prices component, ticked higher to 57.0 in the same period.

Market reaction

The US Dollar Index managed to stage a mild rebound in the wake of the release, although it remains well south of the 103.00 support.