US ISM Non-Manufacturing PMI 03/03/2010

10:00am NY Time  US ISM Non-Manufacturing PMI     Forecast 51.0  Previous 50.5
ACTION:   BUY 53.5     SELL 48.5      USD/JPY

We’ll focusing on the ISM Non-Manufacturing PMI today, or better known as the U.S.  Services PMI, and as all Purchasing Manager’s Indexes, it is a leading indicator of the nation’s Services sector, as many investors look at this release for immediate directional preferences on the future of the economy.  With the current analyst’s expectation above the 50 level at 51.0, in the event that 53.5 is reached, we could see some USD strength and JPY weakness; however, if the opposite is true, or 48.5 figure is released, expect to see stronger JPY and possibly risk aversion driven market.

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.  I’ll be looking to trade USD/JPY on a worse than expected release as USD/JPY may show more of a decline, and sell EUR/USD on a better release as EUR/USD may break the current support areas and breakout to the downside…

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

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