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).
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.