The United States (US) Institute of Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) data for November is due for release today at 15:00 GMT.
Investors will closely monitor the Manufacturing PMI data to get an overview of overall factory activities. The ISM is expected to show that the Manufacturing PMI dropped to 48.6 from 48.7 in October. This is the ninth straight month when the Manufacturing PMI is expected to come in below 50.0. A figure below 50.0 is considered as contraction in the economic activity.
In addition to the PMI data, investors will also focus on sub-components, such as Prices Paid, Employment Index, and New Orders Index. The Manufacturing Prices Paid index, which reflects changes in input prices, is estimated to have increased to 59.5 from the prior reading of 58.0.
How could US ISM Manufacturing PMI affect EUR/USD?
In the daily chart, EUR/USD trades at 1.1629 during the European trading session. The major currency pair holds above the rising 200-day Exponential Moving Average (EMA) at 1.1437, exhibiting a positive trend. The 200-day EMA’s gentle ascent supports the nascent uptrend.
The 14-day Relative Strength Index (RSI) at 57 (bullish side of neutral) confirms strengthening momentum without overbought conditions-day .
A break above the descending trend line resistance at 1.1625 would point to a shift toward the upside and will improve the technical tone.
The descending trend line drawn from 1.1770 has been cleared, and the pair would extend gains while it holds above the breakout area. Pullbacks could find demand around the 200-day EMA, while sustained strength above the current level keeps the short-term bias pointed higher.
(The technical analysis of this story was written with the help of an AI tool)
Economic Indicator
ISM Manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging business activity in the US manufacturing sector. The indicator is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. Survey responses reflect the change, if any, in the current month compared to the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the US Dollar (USD). A reading below 50 signals that factory activity is generally declining, which is seen as bearish for USD.
Read more.
Source: https://www.fxstreet.com/news/when-is-the-us-ism-manufacturing-pmi-data-and-how-could-it-affect-eur-usd-202512011151
