US Services PMI dipping into Contraction – Equities continue to reject Highs
Consecutive misses on US data in the North-American Morning Session as the US Services PMI came in at 49.9 vs 52 expected.
Equity markets which rallied back after the miss on ADP Data, gapped right back down as Services Data, which has been holding strong throughout Hike cycles and geopolitical certainty is now showing weakness.
New Orders, deliveries, production and Employment are contracting while prices are increasing at the highest pace since November 2022.
Markets are not pleased with this news as we start to see a shift in PMI data, tariffs are starting to have an impact.
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
aCu1N – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_aCu1N(){
let adSlot = document.getElementById(‘ad-slot-container-aCu1N’);
fetch(‘/load-advertisement/26/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_aCu1N();
Stock Indices are turning red and the US Dollar takes a toll as the consecutive data misses blocks a third consecutive risk-on session.
The day is not over as the Bank of Canada held rates at 2.75% for the second time, and the Press conference is coming up right now.
You can access this morning’s data report here.
USDCAD and USDJPY Intra-day Charts
USDCAD 30m Chart
{
const imageElement = document.getElementById(‘pinch-to-zoom-img-1381’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex “>
close
USDCAD 30M Chart, June 4, 2025. Source: TradingView
USDCAD is making new lows after the BoC stays put and US Data misses, there isn’t much support before the Higher Timeframe Support Zone (1.3560 to 1.36) except for an oversold RSI.
BoC Governor Macklem is speaking live here.
USDJPY 30m Chart
{
const imageElement = document.getElementById(‘pinch-to-zoom-img-9767’);
if (imageElement) {
panzoom(imageElement, {
maxZoom: 4.0,
minZoom: 0.5,
contain: ‘outside’,
});
}
}, 100);
}
}
}”
x-init=”$watch(‘imgModal’, value => initPanzoom())”
class=”flex “>
close
USDJPY 30M Chart, June 4, 2025. Source: TradingView
USDJPY broke through the immediate pivot zone at 143.400 to 143.530 with decent selling momentum.
RSI is also oversold though the situation is similar to the USDCAD.
Safe Trades!
/*
Requesting advertisement by calling an endpoint assures that
the advertisement is never cached together with the page.
Yq7ZJ – is a forced measure to prevent JS function from
being overwritten.
*/
function load_advertisement_Yq7ZJ(){
let adSlot = document.getElementById(‘ad-slot-container-Yq7ZJ’);
fetch(‘/load-advertisement/30/?is_sidebar=False’)
.then(response => response.text())
.then(html => {
adSlot.outerHTML = html;
})
.catch(error => {
console.error(‘Error fetching the template:’, error);
});
}
load_advertisement_Yq7ZJ();
Opinions are the authors’; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.
