The service sector is still expanding as ISM services starts 2026 in the same spot it ended 2025: a reading of precisely 53.8. The underlying details reflect some nuance in the orders component but more importantly signal a backdrop of stubborn price pressure amid a tepid labor market.
Author
Wells Fargo Research Team
Wells Fargo
EUR/USD trades with marginal losses just above the 1.1800 barrier Wednesday, always against the backdrop of the resumption of the upside momentum in the US Dollar. Meanwhile investors continue to assess the latest advanced inflation data in the euro area and results from the US ADP and ISM Services PMI.
GBP/USD reverses Tuesday’s gains, coming under fresh selling pressure and challenging the mid-1.3600s zone on Wednesday. Furthermore, Cable’s downtick comes in response to decent gains in the Greenback while investors gear up for the BoE’s Super Thursday.
Gold faces some fresh downside pressure on Wednesday, receding below the key $5,000 mark per troy ounce midweek. The yellow metal’s decline comes on the back of the firmer US Dollar and mixed US Treasury yields across the curve, while fresh geopolitical effervescence appears to limit occasional weakness.
Bitcoin rises above $76,000 following an extended decline to $72,946 the previous day as Fed-related headlines keep investors on edge. Ethereum advances toward the $2,300 hurdle amid low retail interest, with futures Open Interest falling to $26.3 billion.
AI is not being abandoned by markets. It is being priced more carefully. Over the past few weeks, the underperformance of software and SaaS stocks has sparked a familiar question: is the AI trade breaking down? The answer is no.
Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.
