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 Monday. The gauge is expected to have eased further in September and come in at 56.3 as compared to the previous month's reading of 56.9.

Meanwhile, the employment sub-component is expected to have rebounded swiftly from the contraction territory and jump to 58.1 points from 47.9 previous. Following Friday's mixed US monthly jobs report, this will would play a critical role in influencing the USD price dynamics and produce some meaningful trading opportunities.

How could it affect EUR/USD?

Given that the recent price action has been exclusively sponsored by developments surrounding the coronavirus saga and the broader market risk sentiment, the data is unlikely to be a major game-changer for the EUR/USD pair. That said, a surprisingly stronger reading might provide a modest lift to the greenback and exert some pressure on the major. Conversely, a weaker reading would further weigh on the already weaker USD and assist the pair to build on its goodish intraday positive move to near two-week tops.

Meanwhile, Yohay Elam, FXStreet's own Analyst outlined important technical levels to trade the EUR/USD pair: “Euro.dollar is trading above the 50 Simple Moving Average on the four-hour chart but below the 100 and 200 SMAs. Momentum and the Relative Strength Index are going nowhere fast. All in all, the relatively limited range trading is showing up in these indicators. Support awaits at 1.1685, which was a swing low last week. It is followed by 1.1625 and 1.1610, support lines from late September.”

Key Notes

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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.