Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Manufacturing Data May Shake the USD
What will happen?
The United States will publish the ISM Manufacturing PMI on September 1, at 17:00 MT time (GMT+3). This indicator represents an index that is calculated based on a survey of purchasing managers in the manufacturing industry. If the indicator is above 50 it signals an expansion of an industry, while figures below 50 indicate contraction. This is important data, as businesses tend to be sensitive to changing economic conditions. Last time, the indicator came out lower than the forecasts (59.5 vs. 60.8 expected). Despite that, the USD had a limited reaction to this release.
How to trade on the ISM Manufacturing PMI?
If you want to trade on this release, check the economic calendar to see the forecast. Compare the actual figures with the estimates.
- If the indicator outperforms the forecast, the USD will go higher;
- In case of an alternative scenario, the USD will weaken.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
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