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 Thursday. The gauge is expected to have eased in August and come in at 57 as compared to the previous month's reading of 58.1.

Meanwhile, the employment sub-component is expected to have fallen deep in the contraction territory and plunged to 31.9 points from 42.1 previous. This would be critical ahead of Friday's closely watched US monthly jobs report (NFP) and provide some meaningful impetus to the USD.

How could it affect EUR/USD?

Given that this week's goodish USD rebound from two-year lows was tied in part to Tuesday's upbeat manufacturing PMI, a surprisingly stronger reading will be enough to provide an additional boost to the greenback. This, in tur, should pave the way for an extension of the EUR/USD pair ongoing corrective slide from levels just above the key 1.2000 psychological mark, or 28-month highs set on Tuesday.

Meanwhile, Yohay Elam, FXStreet's own Analyst outlined important technical levels to trade the EUR/USD pair: “Uptrend support is around 1.1780 at the time of writing. It is followed by 1.1750, a support line from late August, and then by the stubborn cap of 1.17. Resistance is at 1.1850, which held EUR/USD down last week and where the 100 SMA hits the price. The next levels to watch are 1.1880 and 1.925.”

Key Notes

  •  ISM Services PMI Preview: Low bar opens door to (temporary) dollar bounce

  •  EUR/USD Forecast: ECB sends euro to critical support, break or bounce? US data holds the key

  •  EUR/USD Price Analysis: Rising bets for a move to 1.1700

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.