Presentation of the non-manufacturing ISM US PMI
The Institute for Supply Management (ISM) will publish this Wednesday at 2:00 p.m. GMT the index of non-manufacturing purchasing managers (PMI) – also known as the PMI of ISM services. The gauge should rebound to 44 in May from 41.8 the previous month. However, the index will indicate the extent of the economic damage caused by blockages induced by coronaviruses.
How could this affect EUR / USD?
Given that the market reaction to the incoming data has been rather moderate, Wednesday’s publication should not change the situation. That said, any negative surprise could be enough to further weaken the already weaker sentiment surrounding the US dollar and allow the EUR / USD to extend its recent bullish trajectory.
Meanwhile, Yohay Elam, an analyst at Forex Crunch, proposed important technical levels to trade the EUR / USD pair: “Beyond the daily high of 1.1215, the next ceiling is 1.1240, an oscillation compared to March. It is followed only by 1.1360, a springboard descending to the time, then by 1.1410. Some support is at 1.1165, the lowest of the day, closely followed by 1.1150, a highest swing in March. The next lines to watch are 1.1070 and 1.1035. “
• Non-manufacturing PMI overview of the American ISM: if the bottom is inside, is it higher?
• EUR / USD forecast: With many boosters, the overbought conditions may be only a temporary retarder
• EUR / USD price analysis: the rally is now focused on 1.1240
About the US non-manufacturing PMI ISM
The ISM non-manufacturing index published by the Institute for Supply Management (ISM) shows the economic situation in the American non-manufacturing sector. It should be noted that services constitute the largest sector of the American economy and that a result above 50 should be considered favorable to the American dollar.