What this release is
The ISM Non-Manufacturing Employment report measures the level of employment within the United States’ non-manufacturing, or services, sector. This monthly business survey is published by the Institute for Supply Management, with official data available from ismworld.org.
Forex traders monitor this employment data as a gauge of economic health. Strong or weak employment trends in the service sector can indicate broader economic expansion or contraction. Central banks typically consider such labor market conditions when evaluating potential adjustments to monetary policy, which can in turn influence the valuation of the US Dollar.
After its release, market attention often focuses on the headline employment figure. Revisions to previous months’ data are also observed. This report is part of a broader suite of ISM indicators. Historically, this series has typically had a medium impact on currency markets.