Planning to trade the news next week? You might want to take a look at the U. First up, let me tell you what those two acronyms mean. The non-manufacturing PMI takes into account the business conditions in the services sector, such as employment, production, new orders, prices, and inventories, to determine whether the industry expanded or contracted during the month.
A reading above Since the non-manufacturing PMI shows how the services sector fared during a period, it is generally considered a leading indicator of economic growth, along with the manufacturing PMI. Did you know that the U. That means the services sector has been expanding for the past three years! Of course the pace of expansion varies from month to month, as the index has seen its share of worse than expected results. But after dipping from For September, the index landed at Note that the actual figure has been beating expectations for the past three months as well.
The rally usually lasts anywhere between 50 to 70 pips, as you can see from the charts below. At that time, the actual PMI came in better than consensus as it showed a Note, however, that both September and October releases of the U. Another thing to take note of is that the initial move only lasts for two to four candles before the pair consolidates for the rest of the U.
Better check out our risk disclosure if you plan to trade this report! You cannot discover new oceans unless you have the courage to lose sight of the shore.
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