ISM Services PMI Preview: Strong figure set to catapult US Dollar to new highs.

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The data published by the US Bureau of Labor Statistics revealed on Thursday that Unit Labor Costs rose by 3.2% in the fourth quarter. This reading came in much higher than the market expectation of 1.6% and provided a boost to US Treasury bond yields. In turn, the US Dollar continued to outperform its major rivals and Wall Street's main indexes turned south after the opening bell. In the second half of the American session, however, the improving risk mood limited the USD's upside and helped US stocks rebound. Bostic said late Thursday that he was in favor of a 25 bps rate hike at the next policy meeting and noted that they could be in a position to pause the current tightening cycle by mid to late summer.

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