US PMI’s Up Next
The main data focus today will be the release of the US flash manufacturing and services PMI’s for June. On the manufacturing front, the market is expecting the release to drop back to 61.5 from 62.1 prior. On the services front, the market is expecting a drop to 70 from 70.4. While both margins are slim, if a deterioration is confirmed, on the back of Fed chairman Powell’s comments yesterday, we are likely to see USD continue lower. On the other hand, a strong reading might help turn the favour back towards USD, though this would likely require a significantly higher-than-expected set of results. Given ther low expectations and the broader reopening which has occurred over June, there are upside risks into this release, however.
Where to Trade US PMIs?
USDCHF
The USDCHF breakout trade from last week moved above its initial target at .9189 but price is now stalling, having dropped back below the level. If today’s day comes in well above expectations, this could help reignite the trade, taking price higher towards the next target at .9288, supported by both MACD and RSI. However, if today’s data is weaker than expected, we could see further give back towards the .9095 level next.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.