US ISM Services PMI climbs to 50.8 in June

• ISM Services PMI increased to 50.8 in June, surpassing consensus.
• The US Dollar keeps its bullish stance near weekly highs.

Economic activity in the US service sector accelerated slightly in June, with the ISM Services PMI rising to 50.8 from 49.9 in May, above analysts' expectations of 50.5.

Further poll results found that the Prices Paid Index—a crucial barometer of inflation—eased to 67.5 from 68.7, while the Employment Index decreased to 47.2 from 50.7, indicating modest cooling in labour market conditions in the service sector. Finally, the New Orders Index improved to 51.3 from 46.4.

Market reaction

The Greenback gives away some gains following the release, as investors continue to digest the stronger-than-expected employment data. That said, the US Dollar Index (DXY) adds to Wednesday's gains around the 97.00 area, maintaining the weekly recovery well in place.