US Dollar Hit Fresh 52-Week High At 110.79, After US Services Industry Reinforces In August

The US Dollar Index hit a fresh 52-week high today, at 110.79, after the US Services Industry data for August was published. The US services sector reinforced at a faster pace in August according to ISM (Institute for Supply Management) data. ISM's services index gained to 56.9%, marginally higher than the July level. The new orders index also increased 1.9% points, while employment increased 1.1 points. However, prices fell 0.8 points.

Economists at ISM are having a view that increases in business activity, new orders and employment growth have pushed the US Services Industry to boost in August.

The services industry grew in the last month although analysts expected a slowdown, due to signs of easing supply issues and slowing price gains. Analysts are now again optimistic that the US is not in a recession. Today, the euro also increased to 109.35, gaining by 0.28%.

However, US Stock markets are trading lower today. S&P 500 fell by 0.41% to 3,908.19 points, and Nasdaq Composite fell by 0.74% to 11,544.91 points. Commodity markets on the other hand are also marginally down today. Comex gold futures were quoted at US$ 1,714.10, and Comex silver futures were quoted at US$ 18.09. Yesterday, the gold and silver markets traded even lower.

Commenting on the matter of the US Dollar and services industry, Chris Larkin, managing director of trading for E*Trade from Morgan Stanley stated, "Bulls hoping for a rebound will be doing so during a shortened Labor Day week that historically has paralleled September and its track record of underperformance: Losses have been slightly less frequent over the past three decades, but volatility has been higher,", CNBC reports.