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 1500 GMT this Tuesday. The consensus forecast for January stands at 57.1, down from previous month's upwardly revised reading of 58.0 and farther from September's 61.6 - the highest since the inception of the composite index in 2008.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction in case of a relative deviation of +0.90 or -0.69 is likely to be in the range of 22-29 pips in the first 15-minutes and could stretch to around 68-103 pips in the subsequent 4-hours. In the last five releases, the pair moved, on an average, 13-pips in the first 15-minutes after the data release and 38-pips in the following 4-hours.



How could it affect EUR/USD?

Ahead of the release, Yohay Elam, FXStreet's own Analyst offers important technical levels to trade the major: “1.1405 was a swing low in late January and is followed by last week's low point of 1.1390. Further down, 1.1340 was a low point in mid-January. 1.1310 was a double bottom back in December, and 1.1290 is the 2019 low.”

“Looking up, 1.1430 provided support in late January, and 1.1450 capped the pair beforehand. 1.1490 was a swing high in the wake of the new month, and 1.1515 was the post-Fed peak,” he added further.

Key Notes

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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.