FXstreet.com (Barcelona) - Activity in the U.S. non-manufacturing sector has failed to grow in January for fourth consecutive month, although the contraction pace seems to have decelerated compared to November and December, according to the latest ISM report on Business.

The non manufacturing index has increased to 42.9 in January from 40.1 in December, the ISM means contraction of the sector in levels below 50, nevertheless, the second consecutive increase from the 37.4 level posted in November makes think of a bottom from which the sector is pulling up.

New orders index has risen to 41.6 in January from 38.9 in December, while business activity has risen to 44.2% in January from 38.9 in December.

The better than expected ISM has produced a risk appetite wave, fuelling currencies like the EUR/USD which has jumped 50 pips right after the release of the data the GBP/USD has experienced a similar movement and is trading now around 1.4575.