- S&P Global preliminary PMIs are expected to come in mixed in July.
- A negative surprise in the survey is seen supportive of rate cuts.
- EUR/USD faces the next downward target at the 200-day SMA at 1.0815.
On Wednesday, S&P Global will release advanced readings for the United States (US) Purchasing Managers Indexes (PMIs) for July, a monthly survey of business activity. The survey is anticipated to indicate that US economic activity in the private sector faced mixed trends during the current month.
In June, the S&P Global Composite PMI improved to 54.8 from 54.5 in May. The Manufacturing PMI climbed to 51.6 from 51.3, and the Services PMI advanced to 55.3 from 54.8. Evaluating those results, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted, “The S&P Global PMI survey shows US manufacturers struggling to achieve strong production growth in June, hamstrung by weak demand from domestic and export markets alike. Although the PMI has now been in positive territory in five of the first six months of 2024, up from just one positive month in 2023, growth momentum remains frustratingly weak.”
When it comes to the services sector, Williamson added: “US service sector companies reported an encouragingly solid end to the second quarter, with output rising at the fastest rate for over two years. With additional – albeit more muted – support coming from the manufacturing sector, the survey data point to GDP rising at an annualized 2.0% rate in the second quarter, with a 2.5% rate seen for June. Forward momentum is therefore gathering pace.”
What can we expect from the next S&P Global PMI report?
Upcoming PMI prints are forecast to show a slight retracement in the services sector (54.4 vs. 55.3 previous), while the Manufacturing gauge is seen improving marginally (51.7 vs. 51.6 previous), although both of them maintain the area above the key 50 threshold that separates expansion from contraction.
In light of the imminent Federal Open Market Committee (FOMC) event on July 31, results from the PMIs prints will unlikely move the Federal Reserve’s monetary policy dial, as markets have already largely anticipated that the central bank will keep its rates unchanged this month.
However, surprises in the readings in any direction could either reinforce or remove support, albeit temporarily, for a most-likely interest rate reduction at the September 18 meeting.
When will the July flash US S&P Global PMIs be released and how could they affect EUR/USD?
The S&P Global Manufacturing, Services and Composite PMI reports will be issued on Wednesday, July 24, at 13:45 GMT.
Weaker prints from the survey, as well as some retracement in the inflation and employment components, should carry the potential to provisionally hurt the US Dollar (USD) and lend some support to EUR/USD, although this potential scenario is seen as having a temporary effect.
Pablo Piovano, Senior Analyst at FXStreet, notes the critical 200-day SMA as a region to look closely. "Above this area, EUR/USD should keep a constructive outlook and therefore leave the door open to extra gains in the near to medium term," he adds.
"A sustainable breach of the 200-day SMA would most likely put spot under pressure and pave the way for a probable slide to the area of June lows near 1.0650," Pablo concludes.
Economic Indicator
S&P Global Manufacturing PMI
The S&P Global Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity in the manufacturing sector is generally declining, which is seen as bearish for USD.
Read more.Next release: Wed Jul 24, 2024 13:45 (Prel)
Frequency: Monthly
Consensus: 51.7
Previous: 51.6
Source: S&P Global
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.36% | 0.23% | -0.87% | 0.12% | 0.44% | 0.46% | 0.24% | |
| EUR | -0.36% | -0.12% | -1.20% | -0.24% | 0.07% | 0.08% | -0.13% | |
| GBP | -0.23% | 0.12% | -1.08% | -0.10% | 0.21% | 0.22% | -0.01% | |
| JPY | 0.87% | 1.20% | 1.08% | 1.02% | 1.31% | 1.33% | 1.08% | |
| CAD | -0.12% | 0.24% | 0.10% | -1.02% | 0.30% | 0.31% | 0.09% | |
| AUD | -0.44% | -0.07% | -0.21% | -1.31% | -0.30% | 0.00% | -0.22% | |
| NZD | -0.46% | -0.08% | -0.22% | -1.33% | -0.31% | -0.01% | -0.23% | |
| CHF | -0.24% | 0.13% | 0.00% | -1.08% | -0.09% | 0.22% | 0.23% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD regains traction and retargets 1.1000
The US Dollar accelerates its decline in the epilogue of the NA session on Tuesday, lending broad support to the risk-linked space and sending EUR/USD to the 1.0980 region, near daily peaks.
GBP/USD challenges daily tops around 1.2800
GBP/USD maintains its renewed bullish stance on Tuesday, trading at shouting distance from the key resistance at 1.2800 the figure on the back of the marked losses in the Greenback.
Gold erases gains, back to the $2,980 zone
Gold prices now lose extra ground and slip back to the area of daily troughs near $2,980 mark per troy ounce following an unsuccesful attempt to maintain the trade above the critical $3,000 level earlier in the day.
Who is Satoshi? Crypto lawyer sues DHS to reveal Satoshi Nakamoto's identity
James Murphy, a cryptocurrency lawyer popularly known to his followers on X as "MetalLawMan," has filed a lawsuit in a D.C. District Court against the Department of Homeland Security (DHS). He intends to uncover the real face or faces behind Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
The Fed is looking at a hefty price level
We are still in thrall to tariffs, the faux-macro “data” driving markets. The WSJ editorial board advised other countries to take their tariffs to zero so that Trump’s “reciprocal” tariffs will have to be zero, too. Cute, but no cigar.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.