Be Prepared! ISM Manufacturing PMI Tomorrow At 14:00 GMT.

We at FOREXYARD, encourage our customers to get involved in the most intense market events. As such, we think you should know that ISM Manufacturing PMI figures are expected Tomorrow, September 2nd, 14:00 (GMT), and you need to be prepared. Market events like this one tend to create either big changes to current trends or push current trends even further. Generally, the majors are the ones most affected by market events in general but Crude Oil, Gold prices, and even the price of Silver can change dramatically in the seconds after such a publication. For more information about the ISM Manufacturing PMI, please read below.

What is the ISM Manufacturing PMI?

The Institute for Supply Management (ISM) releases a monthly report of the Manufacturing Purchasing Managers’ Index (PMI). The Index is used to measure the level of diffusion based on surveyed purchasing managers in the manufacturing industry. The Index’s figures are very easy to detect; while a 50.0 mark stands for a static industry, a reading above it indicates that the industry is expanding. A reading below 50.0 naturally indicates contraction.

The survey is put together by surveying 400 US purchasing managers who are asked to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories.

Traders should pay special attention to the ISM Manufacturing PMI as it is a leading indicator of economic health. Businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insights into the company’s view of the economy.

If the Survey Comes Inline with Market Forecasts

Expectations for this month’s figure are suggesting that the US manufacturing sector suffered from a mild contraction last month, as analysts expect a 49.9 mark for August. Such a result should be treated as a warning sign for those who claim that the U.S economy has managed to pull itself out of recession, as a non-expanding industry usually takes place at times of decreasing economic activity. Furthermore, if the index fails to reach expectations and delivers even lower than expected results, investors around the globe will see it as an excellent opportunity to initiate a mild correction for the USD, as it will prove that there are still creaking sounds from the U.S economy, and the EUR/USD might rise all the way back to 1.4800.

If the Survey Will Surprise With Bullishness

When the actual figure is higher than forecasted, traders are likely to see the USD appreciating against its currency pairs and crosses. A series of positive data has accompanied the U.S economy lately, which has resulted in a rising trend for the Dollar. In the event that the ISM data will produce a result of 50.5 or above, it can be considered a positive economic gauge that should provide investors with extra confidence that the U.S economy has in fact entered a phase of growth that is developing at a steady and healthy rate. In this scenario, the USD is largely expected to experience another bullish session that could result in EUR/USD levels close to1.4500.

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