Forex Daily Trading News – US ISM Manufacturing PMI July 1, 2011

US ISM Manufacturing PMI July 1

Manufacturing PMI USA  10.00 am NY Time (16.00 MEZ )

ISM or Institute for Supply Management is releasing its PMI

ISM or Institute for Supply Management is releasing its PMI (Purchasing Manager Index) today. As a leading indicator, merchants typically take note of this report for hints of financial trend.



DEFINITION:

The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising development has a constructive impact on the nation’s currency. To supply the index, buying managers are surveyed on quite a few subjects together with employment, manufacturing, new orders, supplier deliveries, and inventories. Traders watch these surveys intently as a result of purchasing managers, by virtue of their jobs, have early access to data about their company’s efficiency, which could be a leading indicator of total financial performance.
The Market
ISM PMI’s are main indicator as said before, and usually they don’t affect the long-term trend of the market, except we get a huge surprise. Nonetheless, with that being stated, July 1 is a new quarter and the start of the second half of 2011, market is more likely to overreact to any surprises.

Trade Plan

We’ll be looking for around 2.5 factors of deviation for this trade. If a 54.5 or better number is launched, we may see some USD strength and JPY weak point, thererefore a BUY on the USD/JPY. If the opposite is true, or 49.5 figure is released, count on to see weaker USD within the quick time period, due to this fact we should always BUY EUR/USD.If our tradable releases are reached, there is a good expectation of fifty pips of market movement throughout the next 60 minutes on USD/JPY or EUR/USD

US ISM Manufacturing PMI 


Forecast 52.0               Previous 53.5

ACTION:


54.5 BUY USD/JPY   /   49.5 BUY EUR/USD 



Further Ideas
We’ll commerce this launch following our buying and selling plan as said above… Keep in mind this is a main indicator, the interval that it focuses is for this month, subsequently on a constructive shock, merchants might speculate on better employment knowledge for next Friday
http://forexlearning.singledad.de/2011/07/us-ism-manufacturing-pmi-july-1-2011/