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

Haresh Menghani FXStreet

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 1500 GMT this Monday. The consensus forecast for October stands at 59.5, down from previous month's strong reading of 61.6.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction in case of a relative deviation of +0.90 or -0.69 is likely to be in the range of 22-29 pips in the first 15-minutes and could stretch to around 68-103 pips in the subsequent 4-hours. In the last five releases, the pair moved, on an average, 13-pips in the first 15-minutes after the data release and 38-pips in the following 4-hours.

How could it affect EUR/USD?

Yohay Elam, FXStreet's own Analyst explains: “Resistance awaits at 1.1400, a round number that capped the pair so far in the new week. 1.1430 was a swing high in late October and support afterward. 1.1455 was the peak on Friday. It is followed by 1.1495 that capped the pair earlier in October.”

“Looking down, 1.1375 provided support on Friday. It is closely followed by 1.1360 that was a swing high late in October and a support line beforehand. 1.1330 was another swing low in late October and the 1.1300 is a significant support line - a double bottom,” he added further.

Key Notes

• US: ISM non-manufacturing to print 59.3 in October - Nomura

• EUR/USD analysis: hard to find reasons to buy the common currency

• EUR/USD drops to 2-day lows near 1.1370

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.

Author

Haresh Menghani

FXStreet

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

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.