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EUR/USD forex signal - U.S. ISM Manufacturing PMI - 02 Apr 2018

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Signal Details
Entry Price: 
1.2300
Take Profit: 
1.2370
Stop Loss: 
1.2275
Direction: 
Buy
Result: 
Loss
How we trade
4.6/5 of 5 ratings

The U.S. ISM manufacturing PMI data will be coming out today amid a slow day in the markets. With the European and UK markets closed and with limited data, the ISM manufacturing PMI report is likely to impact the currency markets. The report will be released at 14:00 GMT today.

According to the economists polled, the ISM's manufacturing PMI is forecast to slip modestly to 60.0 for March, down from February's print of 60.8. This marked the highest reading in the ISM manufacturing PMI in nearly seven years.

Therefore the index is expected to moderate off from the highs. The U.S. manufacturing sector has been posting strong gains mostly due to the fiscal policies by President Trump. However, considering the announcement on new tariffs on steel and aluminum imports as well as tariffs on some goods from China, the manufacturing sector is likely to post a weaker reading on account of the trade uncertainty.

This could be reflected in today's ISM manufacturing report. Preliminary regional reports from various regional Federal Reserve banks showed a mixed picture, although the bottom line remains that manufacturing sector has been growing strongly.

Last week, the final GDP numbers for the fourth quarter showed a strong revision with the U.S. economy expanding 2.7% on the quarter and underlined the strength in the various sectors.

Today's forex trading signal is EURUSD, the currency pair was seen closing near the 1.2300 handle. A break down below this level could extend the gains further. In the near term, the EURUSD could be seen falling back to fill the gap from Thursday's close.

We are looking to go long on EURUSD at 1.2300 targeting 1.2370 with stops around 1.2275 as we expect the currency pair to close higher on the day.

forex signal eurusd 02 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.