The US dollar rose against all seven major currencies on September 23 after S&P Global's flash services PMI hit 58.7, far above the 56.0 forecast. EUR/USD dropped 0.32% to 1.1410 as Treasury yields climbed across the curve.
The dollar climbed across the board as the North American session approached on September 23, with EUR/USD trading at 1.1410, down 0.32% against the greenback. The move followed a September flash services PMI reading that blew past expectations.
Services PMI hits a five-year high
S&P Global's September flash services PMI came in at 58.7 versus 56.0 expected, up from a prior reading of 56.8. Manufacturing also beat forecasts, printing at 57.0 against 53.6 expected, while the composite index reached 58.4 versus a prior 56.0. Employment growth was the strongest since June 2022, and input cost inflation climbed to its highest level since October 2022.
According to S&P Global's Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: "Business is clearly booming now in both manufacturing and services." He also flagged that backlogs increased at the fastest pace since May 2022, even as hiring hit a more-than-four-year high, a combination he said points to rising pricing power and a tougher inflation outlook.
Yields climb, dollar broadens its gains
The PMI beat arrived alongside Treasury yields moving higher across the curve, with the 10-year near 4.978%. The dollar's biggest gain came against the Australian dollar, up 0.62%, while its smallest was against the Canadian dollar, up 0.18%. Earlier that morning, ahead of the US PMI release, Dow futures were down 101 points and Nasdaq futures were down 94 points.
European flash PMIs released the same day stayed in expansion territory but told a mixed story. Eurozone services rose to 53.0 versus 51.4 expected, while German and French manufacturing both came in softer than their prior readings.
Sources: Investinglive, Investinglive
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