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. 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.
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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.