ISM Non-Manufacturing Index Actual 44.0, Expected 45.1, Previous 43.7
Release Explanation: Similar to the PMI numbers, it surveys Purchase Managers on their sentiment on orders, hiring, inventories, and deliveries. Split into the Service Index (above), and then Service Prices which look at the rate of Inflation when materials and services are purchased. Builds an economic picture of the strength of manufacturing activity ahead of official Government reports. These numbers usually are a pre-cursor to the PMI numbers later in the month. A currency can be very reactive to these numbers as over time they have been a reliable read on Government reports to come.
Trade Desk Thoughts: The service sector of the economy contracted for a eighth straight month in March but at a slower pace, the Institute for Supply Management said today. The non-manufacturing index rose to 44.0 from the prior reading of 43.7. Economists had expected the index would rise to 45.1.

Within the sub indexes, business activity index decreased 2.8% to 42.4%. The new orders index decreased 2.6% to 44.4% and the employment index increased 2% to 39%
The prices index increased 6.9% to 46.9% in May, indicating a slower decrease in prices from April.
Forex Technical Reaction: Stocks have fluctuated since the release of the report but that has as much to do with Fed Chairman Bernanke testifying on Capitol Hill. Currently, equity markets are trading lower. The dollar has strengthened in the broad market since the release.