US ISM Non-Manufacturing PMI Overview
The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers’ Index (PMI) – also known as the ISM Services PMI at 14:00 GMT this Wednesday. The gauge is expected to rebound to 44 in May from the previous month’s reading of 41.8. Nevertheless, the index will indicate the extent of economic damage caused by the coronavirus-induced lockdowns.
How could it affect EUR/USD?
Given that the market reaction to the incoming data has been rather muted, Wednesday’s release is unlikely to be a major game-changer. That said, any negative surprise might be enough to further dent the already weaker sentiment surrounding the US dollar and allow the EUR/USD pair to prolong its recent bullish trajectory.
Meanwhile, Yohay Elam, Analyst at Forex Crunch offered important technical levels to trade the EUR/USD pair: “Beyond the daily high of 1.1215, the next cap is at 1.1240, a swing high from March. It is followed only by 1.1360, a stepping stone on the way down back then, and then by 1.1410. Some support is at 1.1165, the daily low, followed closely by 1.1150, a swing high in March. The next lines to watch are 1.1070 and 1.1035.”
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About the US ISM Non-Manufacturing PMI
The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that services constitute the largest sector of the US economy and result above 50 should be seen as supportive for the USD.