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 15:00 GMT this Wednesday. Consensus estimates point a modest downtick to 54.5 in November as compared to the previous month's stronger-than-expected reading of 54.7.
Analysts at TD Securities are also expecting a mild decline in the US Non-Manufacturing index, largely reflecting the recent moderation in consumer spending. “Following the surprise to the downside in the manufacturing survey, we look for a modest decline in the non-manufacturing index to a still firm 54.5 in November following last month's 2pt gain to 54.7.”
How could it affect EUR/USD?
“If the services PMI is below forecast equites, bond yields and the dollar will pay the penalty. If the result is better than anticipated the impact will be negligible, it will not be enough to counter the recent spate of bad news,” explains Joseph Trevisani, Senior Analyst at FXStreet.
Meanwhile, Yohay Elam, FXStreet's own analyst, offered important levels to trade the EUR/USD pair: “Above 1.11, the next level to watch is 1.1130, which has provided support early in November. It is followed by 1.1180 – another double-top, holding the currency pair down in October and November.”
“Looking down, support awaits at 1.1050, which held EUR/USD up in late November. Next, 1.1035 capped it before the recent surge. November's low at 1.0980 is another significant level,” Yohay added further.
Key Notes
• US Services PMI November Preview: Manufacturing indicates lower
• EUR/USD: Bulls need big miss on US data to force a breakout
• EUR/USD Forecast: Ready to resume the rally? Data, double-top, and Donald Trump hold the keys
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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