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Anticipated Changes in PMI USA: Decrease from 49.4 to 49.3

The expected decline in the Purchasing Managers' Index (PMI) of the United States, from 49.4 to 49.3, is generating interest in the financial world. PMI, a measure of business activity in the manufacturing sector, serves as a crucial economic indicator. The projected changes may have an impact on various financial instruments.

Hashtags:
#PMI #Economy #Finance #Stocks #Bonds #Currencies #Commodities #CentralBanks #Forecast #Indicator #FinancialMarkets
How We Use the Information Above

The Purchasing Managers' Index (PMI) is a crucial economic indicator that gauges business activity in the manufacturing sector. Derived from procurement managers' surveys, it offers insights into the current state of the industry. In the context of the United States, PMI USA reflects the manufacturing sector's situation in the country.

Measurement of PMI:

- PMI values typically range from 0 to 100.
- Values above 50 indicate expansion in production, while values below 50 signal contraction.
- Higher PMI values are considered indicative of favorable conditions in the manufacturing sector.

Impact of PMI on Financial Instruments:

1. Stocks:
- An increase in PMI can be seen as a positive signal for stocks, especially those concentrated in the manufacturing sector. Business activity growth may suggest promising profit prospects.

2. Bonds:
- Rising PMI may intensify demand for high-yield assets, potentially leading to a decline in bond prices, particularly fixed-income government bonds.

3. Currencies:
- PMI growth can strengthen the national currency, signaling economic stability and attractiveness to investors.

4. Commodities:
- Commodity markets, such as oil and metals, may react to changes in PMI as increased production can boost raw material demand.

5. Central Banks:
- Central bank decisions may hinge on PMI data. A stable economic growth (high PMI) might prompt central banks to consider raising interest rates to curb inflation.

Direct Correlations:

Direct correlations between PMI and financial instruments can be observed, especially in the short term. For instance, a sharp decline in PMI may lead investors to anticipate its impact on company profits, potentially triggering stock sell-offs and a shift toward risk-free assets like government bonds.

It's important to note that financial markets are complex, and many factors can influence their movements. PMI is just one indicator that should be considered in the context of other economic data and geopolitical events. #PMI #Economy #Finance #Stocks #Bonds #Currencies #Commodities #CentralBanks #Forecast #Indicator #FinancialMarkets
#TradingEvents #FinancialNews #GBPUSD #FOMC #BankOfEngland #InterestRates #Dollar #Unemployment #PMI #TreasuryBonds #Trading #Forex

📅 Events of the Day:
1. 12:30 Moscow Time - UK: PMI Index for the Services Sector.
2. 16:30 Moscow Time - USA: Initial Jobless Claims.

💷 GBPUSD: The FOMC meeting minutes from December 12-13 provided no hints about when the Federal Reserve's rate-cutting cycle might begin, supporting the dollar. Pessimistic assessments of the UK business leaders stimulate the Bank of England towards potential rate cuts. Trader expectations include around a 140 basis points reduction in rates by 2024. Dollar strengthening acts as an obstacle to the rise of GBPUSD.

📉 TechnicalAnalysis: It's preferable to remain cautious due to the mixed fundamental background. Traders are noting the retreat from the five-month peak around 1.2825-1.2830.

🔍 Analytics: Ahead of the release of the monthly US Non-Farm Payrolls (NFP) report, investors prefer to observe Thursday's economic indicators, including PMI for the UK and the US, as well as the ADP employment report for the US private sector.

📈 TradingRecommendation: When the level reaches 1.2682, it is recommended to open long positions. The Take Profit level is set at 1.2700.

📊 AdditionalInformation: More analytics is available on the [FreshForex](https://freshforex.org/analitics/fresh-forecast/?ff_mrk=analytics&utm_source=rssfeed&utm_medium=rss&utm_campaign=rssfun&ff_mrk=rss) website. #Trading #Forex #MarketAnalysis
Key Economic Indicators and Potential Market Impact Today

1. Eurozone Consumer Price Index (CPI) (YoY) (December):
*Actual: 2.9%, Forecast: 3.0%, Previous: 2.4%*

Data on the Eurozone Consumer Price Index reflects the year-on-year inflation for December. If inflation figures fall below expectations, concerns about economic growth may arise, impacting the Euro (EUR) and potentially affecting European stocks.

*Potential Instruments: EUR/USD, Eurozone Stock Indices*

2. US Average Hourly Earnings (MoM) and Nonfarm Payrolls (December):
*Average Hourly Earnings: 0.3%, Forecast: 0.4%*
*Nonfarm Payrolls: 170K, Forecast: 199K*

Indicators of the US labor market, including wage growth and nonfarm payrolls, can influence the US Dollar (USD) and global investment activity. Figures surpassing expectations may strengthen the dollar and instill confidence in the US economy.

*Potential Instruments: USD pairs (e.g., EUR/USD, USD/JPY), US Stock Indices*

3. US Unemployment Rate (December):
*Actual: 3.8%, Forecast: 3.7%*

Changes in the unemployment rate provide insights into the overall state of the US labor market. A lower unemployment rate is generally seen as a positive signal for the economy and may support the US Dollar.

*Potential Instruments: USD pairs, US Stock Indices*

4. US ISM Non-Manufacturing PMI and Prices (December):
*ISM Non-Manufacturing PMI: 52.6, Forecast: 52.7*
*ISM Non-Manufacturing Prices: 58.3*

The ISM Non-Manufacturing PMI reflects the economic condition of the US services sector. A value above 50 indicates expansion, while below 50 suggests contraction. Figures exceeding expectations may support the US Dollar, while lower values could have the opposite effect.

*Potential Instruments: USD pairs, US Dollar Index (DXY), US Treasury Securities*

#Forex #EconomicIndicators #TradingNews #USD #EUR #StockMarket #Investing #Inflation #Employment #PMI #FinancialMarkets