10:00am (NY Time) US ISM Manufacturing PMI Forecast 53.1 Previous 52.6
ACTION: USD/JPY BUY 55.5 SELL 50.0
With US ISM Manufacturing release today, we’ll be looking for a minimum of 2.5 of deviation either way. In the event we get a better than expected release, this could once again fuel the sentiment of risk appetite, thus USD could remain under pressure; however, if the release is negative, below the medium 50 level, we could see stronger USD and stronger JPY throughout the rest of the US session. Since this is a leading indicator, investors pay more attention to this release for signs of the direction of November.
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 Non-Manufacturing PMI 11/04/09
- US ISM Manufacturing PMI 01/04/10
- US ISM Non-Manufacturing PMI (Services) 01/06/10
- US ISM Non-Manufacturing PMI 12/03/09
- US ISM Non-Manufacturing PMI 09/03/09
- US ISM Non-Manufacturing PMI 10/05/09
- US ISM Non-Manufacturing PMI 03/03/2010
- Forex News Trading Strategy For US ISM Manufacturing PMI 12/01/10
- US ISM Non-Manufacturing PMI 02/03/10
