Dollar Rallies on Services PMI, Shrugs Off Negative Employment Data

The US dollar rallied today with help of a positive report about the services sector. The currency managed to log gains even though the private employment report was not as good as economists expected.
Automatic Data Processing reported that employment grew by 179,000 jobs in May. The actual growth rate was far slower than predicted 217,000. This data made traders worry that the official report released on Friday will be not particularly good too.
Yet the greenback paid more attention to the report about the services sector, which was favorable to the currency. Institute for Supply Management reported that the non-manufacturing Purchasing Mangers’ Index was at 56.3 percent in May, demonstrating robust growth of the industry.
EUR/USD went down from 1.3627 to 1.3599 as of 21:15 GMT today. GBP/USD was down a little from 1.6748 to 1.6736, reaching the low of 1.6698 intraday. USD/JPY advanced from 102.50 to 102.73, trading near the highest level since May 2.

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