When is the US ISM Manufacturing PMI and how could it affect EUR/USD?
|US ISM Manufacturing PMI Overview
The Institute of Supply Management (ISM) will release its latest manufacturing business survey result, also known as the ISM Manufacturing PMI at 14:00 GMT this Wednesday. Consensus estimate point to a modest downtick to 55.00 for April from 55.3 recorded in the previous month and any significant deviation has the potential to trigger some choppy US Dollar price action ahead of the latest FOMC monetary policy update later during the US session.
“With the US economy accelerating to 3.2% annualized growth in the first quarter, hiring strong, consumer and business spending picking up and consumer optimism restored there is every reason to expect purchasing managers to sense the uptick in growth and to sense and act accordingly,” writes Joseph Trevisani - FXStreet's own Analyst.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction in case of a relative deviation of +0.52 or -0.69 is likely to be in the range of 11-18 pips in the first 15-minutes and could stretch to around 29-34 pips in the subsequent 4-hours.
How could it affect EUR/USD?
Ahead of the release, Yohay Elam, FXStreet's own Analyst offers important technical levels to trade the major: "The recent high at 1.1230 is the immediate line to watch on the upside and the pair faces further challenges en route to 1.1265 which capped it in late April. The 100 and 200 SMAs are blocking its way. Higher, 1.1325 was a double top in mid-April and towers above.”
“Support awaits at 1.1176 which was the low point in March. It is followed by the initial low of 1.1140 seen in late April before the current 2019 low of 1.1110. Further down, 1.1025 dates back to 2017 and can provide further support,” he added further.
Key Notes
• US Manufacturing PMI, ADP Employment: A coin with two heads
• US: FOMC and ISM manufacturing in focus – TDS
• EUR/USD Forecast: Well-positioned ahead of the Fed, more gains to come?
About the US ISM manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector. It is a significant indicator of the overall economic condition in the US. A result above 50 is seen as positive (or bullish) for the USD, whereas a result below 50 is seen as negative (or bearish).
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