US Services Stabilize, Yen to USD Rate Consolidates Around 150

The Yen to USD rate has been steady, trading close to 150, moving above and below it. Today the US ISM services for February showed that activity in this sector is stabilizing, and USD/JPY has slipped below 150 again, however we expect it to maintain the range that it has been trading in since February.

USD/JPY H4 Chart – Traders Keeping the Range Close to 150

The ISM Services Index for February 2024 came in at 52.6 points, slightly below the expected value of 53.0 points, while January stood at 53.4 points, so we’re hanging around these levels I guess. The pricing in the market for Federal Reserve interest rate cuts has increased slightly, now standing at 91 basis points (bps) compared to the previous expectation of 88 bps for cuts this year. Here are the key details and other components from the report:

Here are some comments from various sectors as included in the ISM Services Index report:

• Accommodation & Food Services: Monitoring the situation in the Red Sea closely.
• Construction: Strong business across the U.S. industrial construction sector, with materials levels returning to pre-pandemic levels.
• Health Care & Social Assistance: Facing challenges from inflationary pressures and labor price increases but continuing to move forward.
• Management of Companies & Support Services: Employers remain cautious about hiring direct employees and considering utilizing contract labor.
• Mining: Experiencing a steady increase in production despite fluctuations in commodity prices.
• Professional, Scientific & Technical Services: Stabilizing from external economic influences and restructuring strategic plans for a successful 2024.
• Public Administration: Noting contradictions in the economy, with high demand for services but layoffs in many large industries.
• Retail Trade: Business is good with inflation under control and trending downward, although finding qualified labor remains difficult.
• Utilities: Labor continues to be in high demand, and lead times for certain equipment remain long.
• Wholesale Trade: Moderate increases in business activity, with improved supplier fill rates and increased restocking levels in preparation for upcoming selling seasons.

USD/JPY Live Chart