Wed, 04 Aug 2010 16:36:00 +0200

Ferex: Dollar picks up after better than expected ISM

FXstreet.com (Barcelona) - The Dollar is picking up against its min rivals, taking some air after continuous decline during the last days, as the unexpected increase of US services sector activity has eased concern about the stagnation of US economic recovery.

USD/JPY recovery from 85.30 low on European session has extended to session high levels above 85.85 to reach 86.20 so far, while the EUR/USD dropped from 1.3210 area, breaking below 1.3185 to hit session low at 1.3150 so far.

GBP/USD retreat from 1.5970 resistance area has extended below 1.5885 support area after the release of US ISM data to reach a fresh session low at 1.5875 so far.

Services sector activity has grown in the US in July at a faster pace than in June, as the ISM Non-manufacturing index rose to 54.3 in July from 53.0 in June, against market expectations of a decline to 53.00. ISM figures indicate growth of the sector's activity on figures above 50.0 and contraction otherwise.