When is the US ISM Non-Manufacturing PMI and how could it affect EUR/USD?

US ISM Non-Manufacturing PMI Overview

The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers' Index (PMI) - also known as the ISM Services PMI at 15:00 GMT this Tuesday. Consensus estimates point an uptick to 54.5 in December as compared to the previous month's weaker-than-expected reading of 53.9.

According to analysts at TD Securities, the US non-manufacturing ISM index report for December took on increased importance after the manufacturing index was unexpectedly reported down on Friday. “We expect a more positive tone in the non-manufacturing report, with the main index up one point to 54.9. It tends to be more sensitive to sentiment swings than the manufacturing index, and the equity market was up, helped by the Phase One deal announcement.”

How could it affect EUR/USD?

Yohay Elam, FXStreet's own analyst, offered important levels to trade the EUR/USD pair – “Support awaits at 1.1170, which is the daily low, followed by 1.1145, a swing high from late December. Next, we find 1.1125m which is 2020 low, followed by 1.1105 that capped the euro around Christmas.”

“Resistance awaits at 1.1208, the weekly high, followed by 1.1230 and 1.240, which both held EUR/USD down in late December. 1.1325 is the next line to watch,” Yohay added further.

Key Notes

   •  US ISM Non-Manufacturing PMI December Preview: Last call for the concerned?

   •  EUR/USD Forecast: The technical and fundamental case for a bullish breakout of the wedge

   •  EUR/USD Technical Analysis: Some consolidation should not be discarded

About the US ISM Non-Manufacturing PMI

The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that services constitute the largest sector of the US economy and result above 50 should be seen as supportive for the USD.