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 15:00 GMT this Monday. Consensus estimate point to a further modest recovery in the manufacturing sector activity and the index is seen rebounding from the previous month's reading of 48.3 to 49.2 in November – still marking the fourth consecutive month of contraction.
As Joseph Trevisani, Senior Analyst at FXStreet explained: “Early signs from export orders, business spending and retail sales indicate that the manufacturing downturn may be lightening. If the confidence in an eventual US-China trade deal takes hold in the business community the initial turn could become a rush for advantage. Currency markets may be on the edge of a dollar rally. If the US manufacturing sector starts to exhibit a positive aspect, the dollar could quickly follow.”
How could it affect EUR/USD?
Ahead of the release, FXStreet's own Analyst Yohay Elam offered important technical levels to trade the EUR/USD pair: “Resistance is at 1.1030, the daily high. Next, 1.1070 is where the 200 SMA meets the price, and it was also a low point in October. The late-November high of 1.11 is next, and it is followed by 1.1180.”
“Support awaits at November's low of 1.0980. Next, we find 1.0950, which was a swing low in October, and then 1.0905, another trough from earlier that month. The 2019 bottom of 1.0879 is next,” Yohay added further.
Key Notes
• US Manufacturing Purchasing Managers’ Index: October’s promise looking for confirmation
• EUR/USD Forecast: Ready for a sell-off on cyber Monday amid multiple issues, outlook bearish
• EUR/USD Technical Analysis: Remains bearish below the 55-day SMA near 1.1040
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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