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.
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
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.