The ISM Non-Manufacturing Index Bounces Back in February

Wells Fargo Research Team Wells Fargo

After slipping in January, the ISM non-manufacturing index rebounded three points to 59.2 in February. The stronger-than-expected reading suggests that the service sector continues to expand at a solid rate.

Services Bounce Back

At 59.2, the non-manufacturing index suggests the service sector has regained its footing after the government shutdown weighed on respondents’ assessments of conditions in January.

The service sector continues to expand at a solid rate, with both the business activity index (64.7) and the new orders index (65.2) rising to fresh cycle highs in February. The strength in new orders implies momentum in the service sector.

Hiring Still on Pace

The employment index fell to 55.2, which suggests a still-solid pace of hiring and is consistent with our expectation for a marked increase in nonfarm payrolls in February.

Survey respondents’ comments were largely positive, although some voiced concerns over the fate of the trade outcome on business activity. We anticipate a moderation in global growth will keep the index in the mid-50 range this year.

Download The Full Economic Indicators

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.