US ISM Non-Manufacturing PMI (Services) 01/06/10

10:00am NY Time  US ISM Non-Manufacturing PMI     Forecast 50.5  Previous 48.7
ACTION:   BUY 53.0      SELL 48.0      USD/JPY

Our focus will be on the 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 above the 50 level at 50.5, in the event that 53.0 is reached, we could see USD strength returning to the market as JPY weakens across the board; however, if the opposite is true, or 48.0 figure is released, expect to see stronger JPY and stronger EUR as USD suffers on a disappointing outlook.

If our tradable releases are reached, there is a good expectation of 50 pips of market movement within the next 120 minutes on both USD/JPY and EUR/USD pairs, among other USD crosses.

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 12/03/09
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 Non-Manufacturing PMI 04/05/10
7. Forex Trading Strategy For ISM Non-Manufacturing PMI 07/06/10
8. Forex News Trading Plan For US ISM Non-Manufacturing PMI 01/05/11
9. Forex News Trade – US ISM Non-Manufacturing PMI 11/03/10
10. Forex News Trading US ISM Non-Manufacturing PMI 04/05/11

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