US ISM Services PMI declines to 51.8 in October vs. 53 expected

• US ISM Services PMI fell to 51.8 in October.
• US Dollar Index stays deep in negative territory below 105.50. 

Business activity in the US service sector expanded at a softening pace in October, with the ISM Services PMI declining to 51.8 from 53.6 in September. This reading came in below the market expectation of 53.

Further details of the survey showed that the Prices Paid Index, the inflation component, edged slightly lower to 58.6 from 58.9, while the Employment Index fell to 50.2 from 53.4.

Market reaction

The US Dollar continued to weaken against its major rivals following the PMI data. As of writing, the US Dollar Index was down 0.75% on the day at 105.35.