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 Wednesday. The gauge is expected to move back into the expansion territory and come in at 50.1 for June as compared to the previous month's reading of 45.4.

How could it affect EUR/USD?

A surprisingly stronger than expected print will reinforce market expectations that the worst of the coronavirus pandemic is behind us and further fuel hopes of a sharp V-shaped global economic recovery. This, in turn, might provide an additional boost to the already stronger global risk sentiment and continue exerting downward pressure on the safe-haven US dollar.

Meanwhile, a softer-than-expected reading seems unlikely to provide any meaningful respite to the USD bulls. Nevertheless, the EUR/USD pair seems all set to build on its intraday positive move to near two-week tops – levels beyond the 1.1300 round-figure mark.

Meanwhile, Yohay Elam, FXStreet's own Analyst offered important technical levels to trade the EUR/USD pair: “Above 1.13, the next line to watch is the double-top of 1.1350, last seen in late June. It is followed by 1.1385 and 1.1410. Support awaits at 1.1265, a swing high from late June, followed by 1.1225, a support line from late last week. Further down, 1.1180 and 1.1165 await EUR/USD.”

Key Notes

   •  US ISM Non-Manufacturing PMI June Preview: Measuring the second wave impact

   •  EUR/USD Forecast: Attacking resistance, break or bounce? Technicals are bullish, fundamentals are tied

   •  EUR/USD Price Analysis: Upside now looks to the 1.1350 zone

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.