How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
United States Purchasing Managers’ Index Will Move The Dollar
United States Purchasing Managers’ Index Will Move The Dollar
United States Institute for Supply Management (ISM) will release services Purchasing Managers' Index (PMI) on October 5, 17:00 GMT+3.
What will happen?
United States Institute for Supply Management (ISM) will release services Purchasing Managers' Index (PMI) on October 5, 17:00 GMT+3. PMI is an index of the prevailing direction of economic trends in the manufacturing and service sectors. The PMI is based on a monthly survey of purchasing managers across many industries, covering the relative level of business activity, and offering one of the most relevant insights into the companies’ view of the economy.
Why is it important?
The value and movements in the PMI and its components can provide useful information to business decision-makers, market analysts, and investors, and is a leading indicator of overall economic activity in the US. The Services PMI provides advanced insight into the services sector, giving investors a better understanding of business conditions and valuable information about the economic backdrop of various markets.
In August 2021, better than expected Service PMI data boosted the dollar significantly.
How to trade on the PMI data?
Because of the comprehensive nature of the index, usually it affects all USD-related pairs. Don’t forget about the gold, XAU/USD may experience a sharp movement if the index will beat expectations.
- If actual number is better than expected – USD will rise.
- Otherwise, fall.
Check the economic calendar
Instruments to trade: EUR/USD, GBP/USD, XAU/USD, USD/JPY.
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