10:00am (NY Time) US ISM Manufacturing PMI Forecast 54.1 Previous 53.6
ACTION: USD/JPY BUY 56.5 SELL 51.0
We’ll be looking to trade the ISM Manufacturing PMI once again today and our tradable deviation for a safe trade is 2.5 points either way. In the event we get a better than expected release, this could once again fuel the recent bullish rally of USD; however, if the release is negative, below or close to the medium 50 level, we could see some relieve and consolidation of the greenback… Since this is a leading indicator, investors pay more attention to this release for signs of market direction this month.
However, with the market still just starting this year, 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 m/m 12/01/09
- US ISM Manufacturing PMI 11/02/09
- US ISM Non-Manufacturing PMI 11/04/09
- US ISM Non-Manufacturing PMI 10/05/09
- US ISM Non-Manufacturing PMI 09/03/09
- US ISM Manufacturing PMI Forex Trading Plan 10/01/10
- US ISM Non-Manufacturing PMI (Services) 01/06/10
- Forex News Trading Strategy For US ISM Manufacturing PMI 12/01/10
- US ISM Manufacturing PMI 10/01/09
- Forex News Trading US ISM Manufacturing PMI 01/03/2011
