10:22 AM EDT, 06/05/2024 (MT Newswires) -- The US dollar rallied against all major currencies in North American trade on Wednesday after a sharp recovery lifted the Institute for Supply Management Services PMI back to an expansionary level.

EUR/USD and GBP/USD fell from intraday highs around 1.0888 and 1.2795 respectively, while USD/JPY and USD/CAD rose to new intraday highs around 156.34 and 1.3717 respectively after the ISM Services PMI surged to 53.8 for May.

That was up sharply from 49.4 previously and far ahead of the consensus for a 50.8 reading with the increase to a sharp recovery in the current activity component of the index, an uptick in the employment index and growth in new orders.

Meanwhile, the ISM prices index fell to 58.1 from 59.2 in May, which was below the consensus for a 59.0 reading.

The survey suggests the US economy's largest sector returned to growth in May following a contraction in April, which was in contrast to the ISM Manufacturing PMI released on Monday, which suggested a deepening recession in the industrial sector.

Most major US dollar pairs swung back into the black after trading lower prior to the release with the largest gains seen in USD/JPY, USD/CHF and USD/CAD, though the Swedish krona and New Zealand dollar retained modest intraday gains.