When is the US ISM Manufacturing PMI and how could it affect EURUSD? Find the answer in the following 1 August EURUSD Impact Analysis.
1 August, GKFX – The Institute of Supply Management (ISM) will release its latest manufacturing business survey result at 1400 GMT this Monday. Consensus estimate point to a slightly lower reading of 59.5 for July, down from previous month’s four-month high level of 60.2.
Deviation impact on EURUSD
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 0.81 or higher is likely to be in the range of 29-pips in the first 15-minutes and could stretch to 56-pips in the following 4 hours.
Alternatively, a deviation of -0.73 or less could move the pair lower by 29-pips in the first 15-minutes and by about 64-pips in the subsequent 4-hours.
The market reaction, however, is expected to be rather muted this time as investors might refrain from placing any aggressive bets ahead of the key event risk – the latest FOMC monetary policy decision, due to be announced later during the New-York trading session.
US ISM Manufacturing PMI: 1 August EURUSD Impact Analysis
Yohay Elam, FXStreet’s own Analyst explains,
“1.1665 separated ranges in late July. Lower, 1.1620 was a trough in late July. Lower, 1.1575 was a low point in the middle of the month. The 2018 low of 1.1508 is next.”
“1.1750 is a double top and also was a high point in mid-July. 1.1795 is the peak during July. Higher above we find 1.1850, the peak that was seen in mid-June,”
he adds further.
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).
This article US ISM Manufacturing PMI: 1 August EURUSD Impact Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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