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 15:00 GMT this Tuesday. Consensus estimates point a modest pickup in the activity and the index is seen rising to 53.5 in October from 52.6 previous.
Meanwhile, analysts at TD Securities are also looking for a modest rebound in the US ISM non-manufacturing index to 53.7 following the drop to a three-year low in September. “We expect the services sector to have improved in October on the back of a solid US consumer. Service sector surveys suggest small gains during the month, while consumer spending has continued to prove resilient.”
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 -0.70 or +0.63 is likely to be in the range of 21-26 pips in the first 15-minutes and could stretch to around 51-pips in the subsequent 4-hours.
-637085575947261816.png)
How could it affect EUR/USD?
Yohay Elam, FXStreet's own analyst outlines the technical set-up and offers important levels to trade the EUR/USD pair – “Momentum on the four-hour chart has turned negative, and EUR/USD dipped below the 50 Simple Moving Average – both bearish signs. However, the currency pair bounced off the 100 SMA. Overall, bears are feeling more confident but have yet to take control.”
“Fierce resistance awaits at 1.1180, which has capped euro/dollar twice in recent weeks – a double-top. It is followed by 1.1230, which held the pair down in August. It is closely followed by 1.1250, also dating back to the summer. Weak support awaits at 1.1125, a swing that was seen in early November. It is followed by 1.1115, which is today's low. Next, we find the double-bottom of 1.1075, which is strong support. 1.10 and 1.0940 are next,” he added further.
Key Notes
US Service Sector October PMI Preview: That turned corner must be around here somewhere
EUR/USD Forecast: Trump's potential tariff removal may remove the floor under the pair
EUR/USD Technical Analysis: Downside pressure targets the 1.1070 region
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.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.