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 14:00 GMT this Friday. Consensus estimate point to a slump in the manufacturing sector activity due to the coronavirus-induced lockdowns. The index is anticipated to fall deep into the contraction territory, to 36.9 for April, down from 49.1 in March.
How could it affect EUR/USD?
Ahead of the important release, the EUR/USD pair built on this week’s positive move and stood tall just below the key 1.10 psychological mark. Given that a disastrous reading might have already been priced in the market, the data seems unlikely to provide any meaningful impetus to the major. However, a negative surprise might be enough to exert some additional pressure on the already weaker US dollar and provide an additional boost to the pair.
Meanwhile, Yohay Elam, Analyst Forex Crunch offered important technical levels to trade the EUR/USD pair: ” Resistance awaits at 1.0970, the daily high, and it is followed by April’s peak of 1.0995. Next, 1.1045 and 1.1090 await it. Support is at 1.0935, the daily low, followed by the former stubborn cap of 1.0890. The next levels are 1.0860 and 1.0810.”
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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).