US ISM Non-Manufacturing PMI 09/03/09
10:00am (NY Time) US ISM Non-Manufacturing PMI Forecast 48.3 Previous 46.4
ACTION: USD/JPY BUY 50.8 SELL 46.0
We’ll trade today’s ISM Non-Manufacturing PMI as it is a leading indicator of the nation’s Services sector. Since this is a leading indicator, many investors look at this release as an indicator of this month’s economic trend. With the possibility of breaking above the medium 50 level to our tradable trigger of 50.8, market could react with risk appetite sentiment and push USD higher; if we get 46.0 or worse, market could turn to risk aversion sentiment and JPY will probably gain across the board.
The ISM Manufacturing PMI released 2 days ago came out 2.3 points higher than expectation, and with the recent bout of optimistic sentiment over the recovery, we could get a better than expected release this month… If the above 50 number is released, it would be the first expansion since Oct. 08.
DEFINITION
“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.”
UPDATE: Once again we got as expected release figures, which surprisingly moved the market with an initial renewed sense of risk appetite, then the market quickly retraced back to the pre-release levels. One of the components (Prices Paid) in the ISM Non-Manufacturing PMI went up surprisingly by 20 points, which was responsible to the initial spike.
I waited for the marke to calm down then enter a trade, which unfortunately I wasn’t able to record it due to my dentist appointment; but I did record the results by the time I got back, which turned out to be break even. Overall today was a directionless day and by staying out of the market, we’ve avoided possible mistakes or loss of money. All in all I am happy, and if you understand that not trading is also a part of news trading, you’ll also be happy as I am.
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And your answer was:
Henry Liu said, Camilo please contact kc [at] newsprofiteer dot com, he will be able to take care of that for you.
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Couldo you help me please?
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