10:00am (NY Time) US ISM Manufacturing PMI Forecast 54.8 Previous 55.7
ACTION: USD/JPY BUY 57.0 SELL 52.0
We’ll be looking to trade the ISM Manufacturing PMI today and we’ll be looking for a minimum of 2.5 of deviation either way. In the event we get a better than expected release, this could once again fuel the sentiment of risk appetite, thus USD could remain under pressure; however, if the release is negative, below the medium 50 level, we could see stronger USD and stronger JPY throughout the rest of the US session. Since this is a leading indicator, investors pay more attention to this release for signs of market direction of December.
However, with an important release from BOJ likely to take place during the London session, we’ll have to pay more attention to the premarket sentiment before jumping into a trade. It’s probably best to stay out of the market if we do not get our tradable deviation or figures.
DEFINITION
“The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the Manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.”
Related posts:
- US ISM Manufacturing PMI 11/02/09
- US ISM Non-Manufacturing PMI 11/04/09
- US ISM Manufacturing PMI 01/04/10
- US ISM Non-Manufacturing PMI (Services) 01/06/10
- US ISM Non-Manufacturing PMI 12/03/09
- US ISM Non-Manufacturing PMI 09/03/09
- US ISM Non-Manufacturing PMI 10/05/09
- US ISM Non-Manufacturing PMI 03/03/2010
- Forex News Trading Strategy For US ISM Manufacturing PMI 12/01/10
- US ISM Non-Manufacturing PMI 02/03/10
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Hi henry this is my first post, thanks alot for your guidance all this while. Basically, I am thinking that the dubai issue is going to make the safe havens roar again what do you think?