US: ISM Services PMI rebounds to 55.2 in January vs. 50.4 expected

• ISM Services PMI in January rose back into the expansion territory.
• US Dollar Index clings to impressive daily gains above 102.50.

The economic activity in the US service sector expanded at a robust pace in January with the ISM Services PMI rising to 55.2 from 49.2 in December. This reading came in better than the market expectation of 50.4.

Further details of the publication showed that the prices Paid Index edged slightly lower to 67.8 from 68.1 but came in higher than the analysts' estimate of 65.5. 

The Employment Index recovered to 50 from 49.4 and the New Orders Index climbed to 60.4 from 45.2.

Market reaction

The US Dollar Index preserves its bullish momentum after this data and was last seen rising 1.05% on the day at 102.78.