The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
All attention to USD
US ISM Manufacturing PMI is coming out on Thursday at 17:00 MT time! Be ready!
Instruments to trade: EUR/USD, USD/CAD, USD/JPY, GBP/USD
This report is considerably significant both for the US dollar and the whole Forex market as the USD is a part of many pairs. Manufacturing PMI reveals the current state of the business environment in the United States. In general, this is the survey of 300 purchasing managers, which depicts how they rate ongoing business conditions. The indicator above 50 demonstrates the expansion of the industry, while the indicator below 50 signals the contraction. Moreover, this report will give a hint of what Friday’s NFP may be like.
- If US ISM Manufacturing PMI is better than estimates, the USD will rise!
- If US ISM Manufacturing PMI is worse than estimates, the USD will drop!
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.