US: ISM Services PMI slumped to 49.6 in December vs. 55 expected

• US ISM Services PMI dropped below 50 in December.
• US Dollar continues to weaken against its major rivals.

The economic activity in the US service sector contracted in December with the ISM Services PMI dropping to 49.6 from 56.5 in November. This reading came in much worse than the market expectation of 55.

Further detail of the publication decealerd that the Employment Index decline to 49.8 from 51.5 and the Prices Paid Index fell to 67.6 from 70, compared to the market expectation of 71.5.

Market reaction

The US Dollar came under renewed selling pressure after the disappointing PMI survey. As of writing, the US Dollar Index was down 0.32% on the day at 104.80.