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 14:00 GMT this Thursday. Consensus estimate point to a slight pickup in the manufacturing sector activity and the index is seen ticking higher to 52.0 in June from the previous month's reading of 51.7. 

Meanwhile, analysts at TD Securities are looking for the US ISM manufacturing index to stay unchanged at 51.7 and explained - “We expect some of the major trade-related concerns to have dissipated in the short-term on the back of the US-China trade truce. This should translate into stabilization in business sentiment and on the outlook for the sector. The message from the ISM-adjusted regional indices was mixed, with retreats in three out of the five published surveys we track.”

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction in case of a relative deviation of -0.74 or +0.67 is likely to be in the range of 21-22 pips in the first 15-minutes and could stretch to around 51-63 pips in the subsequent 4-hours. 

How could it affect EUR/USD?

Ahead of the release, Yohay Elam - FXStreet's own Analyst offers important technical levels to trade the major – “Below 1.1032, we note 1.1025, which served as resistance in May 2017. 1.0960 worked as resistance in April and awaits below the round 1.1000 psychological barrier. The round number of 1.0900 is next down the line after working as a swing high in March that year.”

“On the upside, the previous 2019 low of 1.1101 mentioned earlier is the first cap. Next, we find 1.1120, which was a temporary low beforehand. Further up, the last week's high of 1.1190 is a substantial cap. 1.1240 is next,” he added further.

Key Notes

   •  ISM Manufacturing PMI Preview: The homeward turn

   •  EUR/USD Forecast: Fed-fueled a breakdown of critical downtrend support – further falls on the cards

   •  EUR/USD Technical Analysis: Scope for a visit to 1.1000… and below

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).