US Service sector ISM report falls but prices paid rise- EUR/USD confused

The April Service sector ISM report has now been released. The data has revealed the index fell to 49.4 which was quite a miss. The employment component fell and so did new orders and prices paid spiked to above 59. This is not good news for the dollar or stocks or even for the economic outlook to be honest. However, the reaction to the numbers has been extremely choppy across all the markets. Stocks ate dropping off the highs, but the dollar is not many lower versus the European currencies. This data has certainly thrown some more confusion into the mix this afternoon. The EUR/USD is just now trading at 1.0765, as it tries to make sense of the true implications of this report- higher prices and lower growth. You can draw your own conclusions from that