Economic activity in the US services sector remained unchanged in January, with the ISM Services PMI remaining steady at 53.8. However, the result was above analysts’ expectations at 53.5.

Further survey results showed that the price paid index, a key inflation barometer, rose to 66.6 from 65.1 (revised from 64.3), while the employment rate fell to 50.3 from 51.7 (revised from 52.0), indicating a slight deterioration in labor market conditions in the services sector. Ultimately, the New Orders Index weakened to 53.1 from 56.5 (revised from 57.9).

Market reaction

The dollar remains lightly bid after the release as investors continue to digest the latest ADP report. That said, the US Dollar Index (DXY) is turning around

Tuesday’s losses and return to the 97.50 area, maintaining the weekly recovery at a good level.