Investinglive Americas FX news wrap 5 Aug ISM non-manufacturing not immune from weakness. | investingLive

The headline Services PMI eased to 50.1 from 50.8 in June, signaling marginal expansion. However, weakness was broad-based, with seven of 10 components falling and the largest declines in imports (-5.8 to 45.9) and new export orders (-3.2 to 47.9) — both slipping into contraction, reflecting tariff-related trade headwinds. While prices surged to their highest since early 2023, business activity, new orders, and employment all lost momentum. Respondent feedback underscored tariff concerns, mentioned nine times, with many citing higher costs, delayed projects, and shifting purchasing plans. Retail and real estate remain resilient, but trade-sensitive sectors such as agriculture, construction, and mining are showing strain.

Key Takeaway: Services growth is barely holding above 50, with tariffs increasingly weighing on trade flows and business sentiment

Stocks gave up gains and moved into negative territory. Yield moved lower in the long end, but moved higher in the short end as the yield curve flattened.

In a rare interview with Pres. Trump on CNBC, it was mostly a lot of the “best of” (take it whichever you prefer). Trump delivered wide-ranging remarks touching on the economy, trade, energy, foreign policy, and politics.

He criticized survey data as outdated and politically driven, claiming employment numbers were rigged before the election (he still insists they were revised after the election when they were not) – and more recent numbers were also rigged – and accused Fed Chair Powell of being highly political. He praised Kevin Warsh and “the two Kevins (Hassett and Warsh)” as strong candidates for Fed roles, while removing Bessent – at his request – from consideration for Fed Governor. Trump said prices have fallen sharply since he became President with gas down to $2.40 a gallon ( stocks are higher, and energy costs—particularly gasoline—are down to $2.40 (the average is actually $3.17), attributing this partly to OPEC+ increasing production (“they want to please me”). He asserted that lower energy prices would deter Putin’s aggression. He noted Japan, Indonesia, Vietnam, and Korea have opened up their economies to the US, calling Japan’s commitments a “signing bonus.”

On trade, Trump warned the EU would face higher tariffs unless it invested, with rates reduced to 15% if they comply, and claimed the EU deal would bring $600B in commitments for Trump to spend in any way he wanted. He said tariffs on chips would be announced soon, with pharma tariffs rising from small levels to 150–250% within a year, and India tariffs to be raised on Russian oil imports.

On China, he said Xi requested a meeting (he hates when people say he requested the meeting) and a trade deal could come by year-end, stressing that China respects his administration unlike Biden’s.

He accused Bank of America and JPMorgan of discriminating against conservatives, reaffirmed efforts to remove criminals from the country without harming farmers, and claimed half of murderering immigrants, killed more than one person. Politically, Trump suggested he is “probably not” running again but touted record poll numbers saying he had an approval rating of 71%, declaring Democrats “lost” and called Senate Majority Leader Schumer “finished.”

The USD was mixed/little changed today.

The US stocks moved lower.