The economic activity in the US' service sector expanded at a robust pace in July with the Institute for Supply Management's (ISM) Non-Manufacturing PMI rising from 57.1 in June to 58.1. This reading beat the market expectation of 55 by a wide margin.
Further details of the publication revealed that the New Orders Index climbed to 67.7, the Employment Index edged lower from 43.1 to 42.1 and the Prices Paid Index fell from 62.4 to 57.6.
Commenting on the data, "respondents remain concerned about the pandemic; however, they are mostly optimistic about business conditions and the economy as businesses continue to reopen," said Anthony Nieves, Chair of the Institute for ISM Services Business Survey Committee. "Sentiment varies across industries, as they are impacted differently."
Market reaction
The US Dollar Index failed to stage a rebound after this report and was last seen losing 0.7% on the day at 92.61.
Related articles
US Data Analysis: Big jobs number? Negative NFP looks more likely, trends could extend in gold, dollar.
"Big jobs number on Friday" – said President Donald Trump to Fox News and the public ahead of July's all-important Non-Farm Payrolls report.
It doesn't look that way – the NFP could be a small number or even negative.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD drops back toward 0.6300 as US tariff talks offset strong Aussie jobs data](https://editorial.fxsstatic.com/images/i/AUD-bearish-animal-1_Medium.png)
AUD/USD drops back toward 0.6300 as US tariff talks offset strong Aussie jobs data
AUD/USD is back in the red, heading toward 0.6300 in Thursday's Asian trading. The pair reversed the bounce-led by strong Australian jobs data as US tariff talks put a fresh bid under the pair amid deteriorating risk sentiment. The focus shifts to US data and Fedspeak.
![USD/JPY hangs near fresh YTD low amid rising BoJ rate hike bets](https://editorial.fxsstatic.com/images/i/JPY-bearish-line_Medium.png)
USD/JPY hangs near fresh YTD low amid rising BoJ rate hike bets
USD/JPY flirts with fresh YTD lows near 150.50 early Thursday. BoJ's rate hike plan continues to push JGB yields higher, further underpinning the Japanese Yen. Renewed US tariff talks lent some support to the US Dollar but fails to pause the pair's downside.
![Gold stands firm near all-time peak amid rising trade tensions](https://editorial.fxsstatic.com/images/i/Commodities_Gold-2_Medium.jpg)
Gold stands firm near all-time peak amid rising trade tensions
Gold price sits at the record high near $2,950 as concerns over Trump's tariffs and global trade war underpin safe-haven asset. Bulls shrug off hawkish FOMC minutes released on Wednesday, suggesting that the path of least resistance for the bullion remains to the upside.
![XRP gains 6% as SEC acknowledges CoinShares, Canary and WisdomTree's XRP ETF filings](https://editorial.fxsstatic.com/images/i/XRP-bullish-realistic-1_Medium.png)
XRP gains 6% as SEC acknowledges CoinShares, Canary and WisdomTree's XRP ETF filings
Ripple's XRP saw a 6% uptick above $2.70 on Wednesday following the Securities & Exchange Commission’s accelerated acknowledgment of XRP ETF filings.
![Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK](https://editorial.fxsstatic.com/images/i/usa-1_Medium.png)
Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK
We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.
![The Best brokers to trade EUR/USD](https://editorial.fxsstatic.com/images/Brokers/Editors_Pick_Box_395x179_Medium.png)
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.