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


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 Thursday. The gauge is expected to have eased to 56.0 in November from the previous month's reading of 56.6. Meanwhile, the employment sub-component is expected to have rebounded to 50.9 points from 50.1 previous and the New Orders Index is projected to fall to 49.6 from 58.8.

How could it affect EUR/USD?

Ahead of Thursday's data, the US dollar index plunged to more than two-year lows amid hopes for additional US fiscal stimulus and optimism over the roll-out of a COVID-19 vaccine. This, in turn, pushed the EUR/USD pair to the highest level since April 2018, around the 1.2160 region. A surprisingly stronger reading might provide a modest lift to the greenback and prompt some profit-taking around the major. That said, the reaction is likely to remain short-lived ahead of the closely- watched US monthly jobs report (NFP), scheduled for release on Friday.

As Valeria Bednarik, FXStreet's Chief Analyst, writes: “The EUR/USD pair is overbought in the short-term but still poised to advance. The 4-hour chart shows that technical indicators resumed their advance after a modest corrective decline, holding within overbought levels. The 20 SMA continues advancing below the current price and above the longer ones, which slowly gain momentum. The overbought conditions may result in a corrective decline, but buyers will likely add at lower levels, with 1.2000 now acting as a critical barrier.”

Key Notes

  •  US Services PMI November Preview: Are initial claims the sign markets think?

  •  EUR/USD Forecast: At fresh YTD highs and still advancing

  •  EUR/USD Price Analysis: Up up up it goes

About the US ISM Services 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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures