US ISM Manufacturing PMI 04/01/10

10:00am NY Time  US ISM Manufacturing PMI     Forecast 57.0  Previous 56.5
ACTION:   BUY 59.5      SELL 54.0      USD/JPY

We’ll be focusing on the ISM Manufacturing PMI out of US today during the New York Trading session, and our tradable deviation for a is 2.5 points either way for a safe entry.  In the event we get a better than expected release, this could fuel the recent risk appetite rally; however, if the release is negative, below or close to the medium 50 level, we could see some minor consolidation resulting more JPY strength (USD/JPY moving down)…  Since this is a leading indicator, investors tend to pay more attention to this release for signs of future market directions…  And with the NFP scheduled on Friday, this release might have more impact than usual should we get a huge surprise.

We’ll have to pay more attention to the premarket sentiment before jumping into a trade.  In the grand scheme of things, this release shouldn’t really affect the long-term trend of the market but if we get a negative/positive release as PMI in general are not based on actual computable market data.

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:

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

Tagged as: currency, economic performance, economy, Expectation, Forecast, Fundamental News, fundamental outlook, institute of supply management, Inventories, Investors, ISM, Jobs, Leading Indicator, pips, purchasing manager index, Purchasing Manager's Index, purchasing managers, risk appetite, risk aversion, sentiment, Services PMI, Supplier Deliveries, Surveys, US, USA, USD