What events to follow and how to trade during the week of July 2-6?
How may purchasing managers push the USD?
What will happen?
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time. The indicator‘s calculations are based on a survey of about 300 purchasing managers. It asks respondents to rate the relative level of business conditions. If the index is higher than 50, it indicates industry expansion. On contrary, a level below 50 shows a slowdown of an industry. During the previous release, the indicator reached 60.8 points, marking the highest optimism since September 2018.
How to trade on the ISM Manufacturing PMI?
It’s very easy to trade on this indicator! You just need to follow the forecasts in the economic calendar.
- If the indicator is higher than the forecast, the USD will strengthen;
- If the indicator is lower than the forecast, the USD will weaken.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
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The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).