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 14:00 GMT this Monday. Consensus estimated a modest pickup in growth to 55.5 for the month of July from a near two-year low level of 55.1 recorded in the previous month.
 
Meanwhile, analysts at TD Securities suggest that the index is likely to surge to 56.3 in July and explained - “Regional indices point to an improvement in July, with the Empire, Philly and Dallas Fed surveys suggesting an increase in activity. This would imply further divergence between the economy's services and manufacturing sectors.”

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 -0.70 or +0.63 is likely to be in the range of 21-26 pips in the first 15-minutes and could stretch to around 51-pips in the subsequent 4-hours.

How could it affect EUR/USD?

Yohay Elam, FXStreet's own analyst outlines the technical set-up and offers important levels to trade the EUR/USD pair – “EUR/USD has briefly broken above the 50 Simple Moving Average on the four-hour chart but fell back below it. Downside momentum is persisting while the Relative Strength Index is balanced. Overall, the bears are leading against the bulls.”
 
“Some support awaits at 1.1110, which provided some support in late July. The previous 2019 low of 1.1101 is the next level to watch. Lower, 1.1070 was a stepping stone for the pair on its way up, and the final line to watch is 1.1027 – the fresh 2019 trough. Resistance awaits at 1.1190 which was a swing high in late July, followed by 1.1245,” he added further.

Key Notes

   •  US July Services PMI Preview: The US is not enough
 
   •  ISM Non-Manufacturing PMI may disappoint and weigh on the dollar – FXStreet Surprise Index
 
   •  EUR/USD rallies beyond mid-1.1100s, over 1-week tops amid notable USD supply

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.