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

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. The index is anticipated to have ticked higher to 58.8 in February from the 58.7 previous, marking expansion for the ninth straight month.

Joseph Trevisani, Senior Analyst at FXStreet explains: “Business executives have been cautiously optimistic for several months, investing but not hiring. While January's near record run in US Retail Sales and the looming end of the pandemic may suggest that that the recovery is at hand, employment will likely remain restrained for some time.”

How could it affect EUR/USD?

Ahead of the key release, the US dollar was back in demand and dragged the EUR/USD pair to one-and-half-week lows, further below mid-1.2000s. An upbeat reading will further fuel expectations for a relatively stronger US economic recovery and might be enough to provide an additional lift to the greenback. Conversely, the market reaction to a softer reading is more likely to remain limited. This, in turn, suggests that the path of least resistance for the major remains on the downside.

Meanwhile, Valeria Bednarik, Chief Analyst at FXStreet provided a brief technical outlook for the major and offered important technical levels to trade: “The EUR/USD pair is trading below the 38.2% retracement of its November/January rally at 1.2060, the immediate resistance level. The near-term picture is bearish, as EUR/USD is developing below all of its moving averages, with the 20 SMA accelerating south above the larger ones. Technical indicators hover near oversold readings, partially losing their bearish strength as the pair bounced from daily lows. Nevertheless, the risk remains skewed to the downside, with the next Fibonacci support at 1.1970.”

Key Notes

  •  US ISM Manufacturing PMI February Preview: Will business catch up with consumers?

  •  EUR/USD Forecast: Euro suffers below resistance, ECB's reluctance and US data may keep it down

  •  EUR/USD Forecast: Pressure mounts on US stimulus hopes

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retreats from 1.20 amid mixed US data

EUR/USD has retreated from its move toward 1.20 as US data is mixed. Building Permits and Housing Starts beat expectations but Consumer Sentiment missed with 86.5 points. Vaccine news is eyed.


GBP/USD battles 1.38 as US yields halt their falls

GBP/USD is trading around  1.38, off the highs as US Treasury yields are stabilizing after falling beforehand. US data is mixed. Sterling continues benefiting from Britain's vaccination campaign.


Stellar bulls on wrong side of uphill battle

XLM price has erected an ascending parallel channel on the 4-hour chart. A bounce from the setup’s lower trend line, although logical, seems unlikely. Stellar’s bear flag pattern on the 1-hour chart adds weight to the bearish outlook.

Read more

XAU/USD climbs to the highest level since Feb. 25, beyond $1,780

Gold gained strong follow-through traction for the second consecutive session on Friday. The USD struggled to capitalize on its attempted recovery and benefitted the commodity. Rebounding US bond yields, the risk-on mood did little to hinder the positive momentum.

Gold News

Gamestop waits for breakout signal, technical levels to watch

GameStop is struggling for relevance as COIN takes over! GME shares under pressure, down 6% on Thursday. GME is looking for a new CEO according to Reuters.

Read more