Forex Trading News – ISM Non-Manufacturing PMI drops in the US

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According to data released by the Institute for Supply Management in the United States, business conditions came out worse than expected, falling in April.

Experts predicted a 57.4 growth, however the economy deteriorated to 52.8 versus the previous 57.3.

ISM Non-manufacturing PMI is released on a monthly basis. Any figure above 50.0 indicates industry expansion, below indicates contraction.

It is considered to be a leading indicator of economic health as it gives an indication of the direction of the economy and whether business conditions are improving.

Upon release of the news, the greenback retreated from a session high of 81.16 and spiked down against the Yen during news time from 80.82 to 80.62, the continued to extend lower to 80.50, a fresh five-week low.

Meanwhile, the U.S. dollar index, which measures the value of the greenback versus a basket of major currencies, fell as low as 72.696

The Dollar began declining since the release of disappointing employment data earlier in the day. ADP Non-Farm Payroll data showed that U.S. private employers added fewer jobs than expected in April. The report showed private payrolls rose by 179,000 jobs last month, compared to the expected gain of 198,000.