Global manufacturing data to dictate market sentiment

PMI watch

During the upcoming trading week global manufacturing data is set to take center stage, with the European Union, United Kingdom, China, Japan, and Korea all releasing important PMI manufacturing readings. the release of the ISM survey is set to headline the economic docket, following last month shock 48.1 headline reading. The ISM survey reading is expected to improve, however, US Manufacturing is likely to remain in economic contraction. 

Market participants also look to the release of the FOMC Meeting Minutes later this week and key CPI inflation data from the German economy. The yearly price close will also come into focus for technical, this is especially pertinent for the digital currency space.

Monday 30th December US Pending Home Sales

The Pending Home Sales Index, released by the National Association of Realtors is a leading indicator of housing activity that measures housing contract activity and is based on signed real estate contracts for existing single-family homes, condos and co-ops. Housing is typically correlated to the overall state of the economy; particularly indicative of economic turning points. A rebound in the housing market is often a leading indicator of an economic recovery.

• The USDCHF pair is only bullish while trading above the 0.9900 level, further upside towards 0.9925 and 0.9950 levels remains possible.
• If the USDCHF pair trades below the 0.9900 level, sellers are likely to test the 0.9680 and 0.9540 support levels.

Tuesday 31st December, CNY Chinese Manufacturing PMI

The Manufacturing Purchasing Managers Index, released by the CFLP and is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector each month. The figure is determined by the Chinese Federation of Logistics and Purchasing and China’s Logistics Information Centre, based on data collected by the National Bureau of Statistics.

• The USDJPY pair is only bullish while trading above the 109.00 level, further upside towards 110.00 and 111.00 levels remains possible.
• If the USDJPY pair trades below the 109.00 level, sellers are likely to test the 108.60 and 108.20 support levels.

Wednesday 1st January, New Year’s Day Holiday

Most major financial markets and banks will be closed in observation of New Years Day.

Thursday 2nd January, GBP UK Manufacturing PMI

The UK Manufacturing Purchasing Managers Index is released by both the Markit Economics and the Chartered Institute of Purchasing and Supply. The PMI Index measures the activity level of purchasing managers in the manufacturing sector. A reading above 50.0 indicates expansion in the sector and below 50.0 indicates contraction. The Manufacturing PMI is based on a survey of purchasing managers in the manufacturing sector. 

• The GBPUSD pair is only bullish while trading above the 1.3070 level, further upside towards the 1.3130 and 1.3200 resistance levels seems possible. 
• If the GBPUSD pair trades below the 1.3070 level, sellers are likely to test towards the 1.3000 and 1.2900 support levels. 

Friday 3rd January, USD ISM Manufacturing Survey

The Institute for Supply Management  Manufacturing Index shows business conditions in the US manufacturing sector. It is a significant indicator of the overall economic condition inside the US economy. A  ISM Manufacturing survey result above 50 is seen as positive or bullish for the US dollar, whereas a result below 50 is seen as negative or bearish for the US dollar.

• The EURUSD pair is only bullish while trading above the 1.1150 level, further upside towards 1.1200 and 1.1300 levels remains possible.
• If the EURUSD pair trades below the 1.1150 level, sellers are likely to test the 1.1100 and 1.1060 support levels.