The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers’ Index (PMI), also known as the ISM Services PMI at 1400 GMT and the forecast for May stands at 57.5 points, an increase from previous month’s reading of 56.8.
How could it affect the US Dollar (DXY)?
Yohay Elam, Analyst at FXStreet explains: “A better ISM Non-Manufacturing PMI could resume the broader uptrend of the greenback and turn the recent slide into just another correction, blip, or dead cat bounce in the greater scheme of things.”
“And what if the figure misses expectations? The immediate reaction will be a fall, but if the number comes out below expectations (57.5) but above last time (56.8), the US Dollar could hold its ground. A score of around 57 in America’s biggest sector is still good news,” Yohay adds further.
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.
Key Notes
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