The lower-than-expected S&P Global Services PMI and higher-than-expected S&P Global US Manufacturing PMI data can have varying impacts on the USD and monetary policies.
The lower services PMI suggests a slowdown in the services sector, which could lead to decreased economic activity and potentially weaken the USD. On the other hand, the higher manufacturing PMI indicates an expansion in the manufacturing sector, which could strengthen the USD.
In terms of monetary policy, the mixed data could create a dilemma for the Federal Reserve. A slowdown in the services sector may prompt the Fed to consider further easing measures to stimulate the economy. However, the expansion in the manufacturing sector may lead to concerns about inflationary pressures, potentially prompting the Fed to tighten monetary policy.
Overall, the conflicting data could lead to increased volatility in the currency markets as investors try to gauge the implications for future monetary policy decisions. It will be important to monitor additional economic indicators and Fed statements to get a clearer picture of the direction of the USD and monetary policy.