When is the US ISM Manufacturing PMI and how could it affect EUR/USD?

Haresh Menghani FXStreet

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).

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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