October 1, 2012
ISM or Institute for Supply Management is releasing its PMI (Purchasing Manager Index) today. As a leading indicator, traders generally pay attention to this report for hints of economic trend.
Here´s the forecast:
10:00am NY Time US ISM Manufacturing PMI Forecast 50.0 Previous 49.6
DEVIATION: 2.0 (BUY USD 52.0 / SELL USD 48.0)
DEFINITION:The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation´s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company´s performance, which can be a leading indicator of overall economic performance.
Trade PlanWe´ll be looking for around 2.0 points of deviation for this trade. If a 48.0 or better number is released, we could see some USD weakness, thererefore SELL USD. If the opposite is true, or 52.0 figure is released, expect to see stronger USD in the short term, therefore we should BUY USD.
If our tradable releases are reached, there is a good expectation of 50 pips of market movement within the next 60 minutes on USD.
Recommended Pairs : EURUSD, USDJPY
Here´s the forecast:
10:00am NY Time US ISM Manufacturing PMI Forecast 50.0 Previous 49.6
DEVIATION: 2.0 (BUY USD 52.0 / SELL USD 48.0)
DEFINITION:The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation´s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company´s performance, which can be a leading indicator of overall economic performance.
Trade PlanWe´ll be looking for around 2.0 points of deviation for this trade. If a 48.0 or better number is released, we could see some USD weakness, thererefore SELL USD. If the opposite is true, or 52.0 figure is released, expect to see stronger USD in the short term, therefore we should BUY USD.
If our tradable releases are reached, there is a good expectation of 50 pips of market movement within the next 60 minutes on USD.
Recommended Pairs : EURUSD, USDJPY
USD/JPY - US Dollar / Yen
Resistances : Weekly 78.85 ; Daily 78.45 ; Hourly 78.1
Supports : Weekly 77.1 ; Daily 77.45 ; Hourly 77.8
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