The economic activity in the US service sector exhibited robust growth in February, with the ISM Services PMI rising to 53.5 from January's 52.8. This figure surpassed market expectations of 52.6, indicating a positive trend for the second month of the year. Despite this upbeat performance, the US Dollar Index fell by 0.9% on the day, settling at 104.55, as traders remained cautious amidst ongoing market volatility.
The Prices Paid Index, a key measure of inflationary pressures in the service sector, climbed to 62.6 from 60.4, pointing to rising costs for service providers. Meanwhile, the Employment Index also showed improvement, increasing to 53.9 from January's 52.3, suggesting a strengthening job market within the sector.
In the cryptocurrency sphere, Bitcoin (BTC), Ethereum (ETH), and XRP all posted modest gains amid a cautious trading environment. Traders exhibited a risk-averse stance as they navigated through volatility concerns throughout the week. The market showed signs of recovery from Monday’s sharp declines, with Aave (AAVE) experiencing a rally on Wednesday.
The anticipation for the White House Crypto Summit scheduled for Friday added an additional layer of complexity to the week's trading activities. Market participants eyed potential regulatory discussions that could impact the future landscape of digital currencies.