U.S. ISM non manufacturing index dropped 2.8 points to 52.9 in May after rising 1.2 points to 55.7 in April. This is the lowest since February 2014. The index was 55.9 a year ago. The business activity index fell to 55.1 from 58.8. The employment component plunged to 49.7 from 53.0, matching the lowest since February 2014. New orders fell to 54.2 from 59.9. New export orders tumbled to 49.0 from 56.5. Prices paid was one of the few components posting a gain, rising to 55.6 from 53.4. Another disappointing report.
The dollar extended lower following the factory orders and services ISM results, where the former missed slightly and the latter missed significantly. EURUSD has rallied to 1.1348, matching the May 17 peak, as USDJPY fell to 106.77, levels last seen on May 6.
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