10:00am (NY Time) US ISM Non-Manufacturing PMI Forecast 48.1 Previous 47.0
The Institute of Supply Management (ISM) Non-Manufacturing Index measures the activity level of purchasing managers in the services 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.
PMI came out worse than expected and sparked a flow of risk aversion movement that started with the ADP data. But since we didn’t get the deviation that I was looking for to maintain a steady flow of risk aversion movement, I decided to go against the move and went LONG on both GBP/JPY and EUR/JPY right along the bottom of the move… the result was about 60+ pips of gain. Not a bad trade…