• ISM Manufacturing PMI came in better than expected in January.
• US Dollar Index holds steady near 103.50 after the data.

Business activity in the US manufacturing sector continued to contract in January, albeit at a softer pace than December, with the ISM Manufacturing PMI rising to 49.1 from 47.1. This reading came in better than the market expectation of 47.

Further details of the report showed that the Prices Paid Index climbed to 52.9 from 45.2 and the Employment Index edged lower to 47.1 from 47.5. Finally, the New Orders Index advanced to 52.5 from 47.

Assessing the survey's findings, "the US manufacturing sector continued to contract, though at a marginal rate compared to December," said Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "Demand moderately improved, output remained stable and inputs are accommodative