US ISM Non-Manufacturing PMI 12/03/09

10:00am NY Time  US ISM Non-Manufacturing PMI     Forecast 51.6  Previous 50.6
ACTION:   BUY 54.0      SELL 49.0      USD/JPY

Today we’ll tradethe ISM Non-Manufacturing PMI, or better known as the Services PMI, which is a leading indicator of the nation’s Services sector, as many investors look at this release for directional references on the near-term future of the economy.  With the current analyst’s expectation at above the 50 level or 51.6, in the event that 54.0 is reached, we could see risk appetite returning to the market as JPY weakens across the board; however, if the opposite is true, or 49.0 figure is released, expect to see stronger JPY and possible stronger USD from risk aversion flows.

(Please note that the expectation for this month is exactly the same from last month… but last month’s release missed expectation by 1.0)

We’ll obviously be looking to BUY USD/JPY on 54.0 or better release and SELL USD/JPY on a 49.0 release, with a good expectation of 50 pips of market movement within the next 120 minutes.

DEFINITION:

“The Institute of Supply Management (ISM) Non-Manufacturing Index measures the activity level of purchasing managers in the services 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:

1. US ISM Non-Manufacturing PMI 11/04/09
2. US ISM Non-Manufacturing PMI (Services) 01/06/10
3. US ISM Non-Manufacturing PMI 03/03/2010
4. US ISM Non-Manufacturing PMI 02/03/10
5. Trading Plan For US ISM Non-Manufacturing PMI 06/03/10
6. US ISM Manufacturing PMI m/m 12/01/09
7. US ISM Manufacturing PMI 11/02/09
8. Forex Trading Strategy For ISM Non-Manufacturing PMI 07/06/10
9. US ISM Non-Manufacturing PMI 04/05/10
10. Forex News Trading Plan For US ISM Non-Manufacturing PMI 01/05/11

Tagged as: Access To Data, currency, economic performance, economy, Expectation, institute of supply management, Inventories, Investors, ISM, Jobs, Leading Indicator, pips, purchasing managers, risk appetite, risk aversion, Services PMI, Supplier Deliveries, Surveys, Virtue