What to Expect from USD PMI Release?

What to Expect from USD PMI Release?

What will happen?

The US Institute for Supply Management will announce the Purchasing Managers’ Index (PMI) on April 5, at 17:00 MT. The indicator measures the diffusion index level based on the info from purchasing managers, excluding manufacturing. This is a monthly release.

PMI is a leading indicator of economic health. Businesses respond quickly to market conditions, and their purchasing managers have the most up-to-date and relevant info about the companies’ views of the economy.

This data is obtained from a survey of approximately 300 purchasing managers. The survey respondents were asked to rate the relative level of business conditions, including employment, production, new orders, prices, supplier deliveries, and inventories.

How will USD react?

PMI provides useful information to business decision-makers, market analysts, and investors. It gives an expanded view of the services sector, so that investors have a better understanding of the business environment and valuable insights into the economic background of various markets.

The previous release on March 3 didn’t beat the expectations with 56.5 vs. 61.2. That’s why the USD boost was less than usual, only 430 points or 0.43%.

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How to trade on PMI release?

PMI usually affects all pairs associated with the US dollar. Don't forget about gold. XAUUSD could experience a sharp move down if the index beats expectations.

  • If the actual number is better than expected, the USD will rise.
  • Otherwise it fall.

Check the Economic Calendar.

Instruments to trade: EURUSD, GBPUSD, XAUUSD, USDJPY.

Similar

Can the UK CPI surprise?
Can the UK CPI surprise?

The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.

The US Retail Sales Update
The US Retail Sales Update

The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.

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