When is the US ISM Non-Manufacturing PMI and how could it affect EUR/USD?
|US ISM Non-Manufacturing PMI Overview
The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI at 1500 GMT this Monday. The consensus forecast for October stands at 59.5, down from previous month's strong reading of 61.6.
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 +0.90 or -0.69 is likely to be in the range of 22-29 pips in the first 15-minutes and could stretch to around 68-103 pips in the subsequent 4-hours. In the last five releases, the pair moved, on an average, 13-pips in the first 15-minutes after the data release and 38-pips in the following 4-hours.
How could it affect EUR/USD?
Yohay Elam, FXStreet's own Analyst explains: “Resistance awaits at 1.1400, a round number that capped the pair so far in the new week. 1.1430 was a swing high in late October and support afterward. 1.1455 was the peak on Friday. It is followed by 1.1495 that capped the pair earlier in October.”
“Looking down, 1.1375 provided support on Friday. It is closely followed by 1.1360 that was a swing high late in October and a support line beforehand. 1.1330 was another swing low in late October and the 1.1300 is a significant support line - a double bottom,” he added further.
Key Notes
• US: ISM non-manufacturing to print 59.3 in October - Nomura
• EUR/USD analysis: hard to find reasons to buy the common currency
• EUR/USD drops to 2-day lows near 1.1370
About the US ISM non-manufacturing PMI
The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that services constitute the largest sector of the US economy and result above 50 should be seen as supportive for the USD.
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