When is the US ISM Manufacturing PMI and how could it affect EUR/USD?

US ISM Manufacturing PMI Overview

The Institute of Supply Management (ISM) will release its latest manufacturing business survey result, also known as the ISM Manufacturing PMI at 15:00 GMT this Friday. Consensus estimate point to a modest recovery in the manufacturing sector activity and the index is seen rebounding from the previous month's reading of 48.1 to 49 in December – still marking the fifth consecutive month of contraction.

As Joseph Trevisani, Senior Analyst at FXStreet explained: “Can the limited trade agreement restore the optimism of factory managers, export orders and investment spending to the levels of 2018? Potentially yes, especially if the deal unleashes some of the inhibited growth in the Chinese and American economies, both have demonstrated the capacity to expand faster than their current rates. December’s PMI figures will reflect past concerns but improvement can be expected before the end of the first quarter.”

How could it affect EUR/USD?

Ahead of the release, FXStreet's own Analyst Yohay Elam offered important technical levels to trade the EUR/USD pair: “Euro/dollar has dropped below the 50 Simple Moving Average on the four-hour chart – a bearish sign. Moreover, momentum has turned negative. Further down, 1.1130 and 1.1110 also held EUR/USD down during December. They are followed by 1.1065, which provided support around Christmas.”

“Looking up, 1.1175 was a swing high in mid-December. It is followed by 1.12, a round number that provided support in the dying days of 2019. Next, we find 1.1220 and 1.1240, which capped it around the same time,” he added further.

Key Notes

   •   US ISM manufacturing PMI December Preview: Waiting for improvement from China trade

   •   EUR/USD Forecast: Clinging to critical support after major Mid-East escalation, ahead of data

   •   EUR/USD Technical Analysis: Sellers will look for entry below 200-day EMA

About the US ISM manufacturing PMI

The Institute for Supply Management (ISM) Manufacturing Index shows business conditions in the US manufacturing sector. It is a significant indicator of the overall economic condition in the US. A result above 50 is seen as positive (or bullish) for the USD, whereas a result below 50 is seen as negative (or bearish).