What is the PMI and How to Trade it?

Join Luca Santos in this engaging video to gain a comprehensive understanding of the PMI and its significance in trading the U.S. economy.
ACY Securities | 721 dias atrás

Understanding PMI: A Key Indicator for Trading the U.S. Economy

In this informative video, Luca Santos, Technical Market Analyst from ACY Securities, delves into the significance of the Purchasing Managers' Index (PMI) as a crucial economic tool and how to effectively trade it. As one of the most reliable leading indicators of the U.S. economy, the PMI provides valuable insights into the manufacturing and services sectors. With the United Kingdom S&P Global/CIPS Manufacturing PMI as well as United States S&P Global Manufacturing PMI Final being released tonight makes this video a valuable tool for your trading.

Luca explains that the PMI is a monthly survey-based indicator compiled and released by the Institute for Supply Management (ISM). The survey is sent to senior executives across more than 400 companies in 19 primary industries, carefully weighted by their contribution to the U.S. gross domestic product (GDP).

During the survey, the executives are asked about business conditions and any changes, including improvements, deterioration, or no changes. The PMI is based on five major survey areas, each holding equal weightage:

1. New Orders: This component reflects the number of orders placed for goods and services, providing insights into future demand.

2. Inventory Levels: The inventory levels survey area assesses the current stock of finished goods, raw materials, and supplies. Fluctuations in inventory levels can indicate shifts in production and demand.

3. Production: This component measures the level of output from manufacturing and service industries. It provides an overview of the overall productivity and capacity utilization.

4. Supplier Deliveries: The survey area of supplier deliveries gauges the speed at which raw materials are delivered to companies. Delays in deliveries may indicate supply chain disruptions or increased demand.

5. Employment: The employment component focuses on workforce conditions. It highlights changes in hiring or layoffs and reflects the overall labor market trends.

Luca Santos shares practical strategies on how traders can leverage the PMI to make informed decisions in the financial markets with examples for the GBPJPY and the GBPUSD. By understanding the implications of PMI data releases and monitoring the trends, traders can identify potential trading opportunities and manage risk effectively.

Join Luca Santos in this engaging video to gain a comprehensive understanding of the PMI and its significance in trading the U.S. economy. Stay ahead of the markets by incorporating this key economic tool into your trading strategy.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

Regulamento: ASIC (Australia), FSCA (South Africa)
read more
ATFX Market Outlook 23rd June 2025

ATFX Market Outlook 23rd June 2025

For the week, the Dow was flat, the S&P 500 fell 0.2%, while the Nasdaq rose 0.2%. The uncertainty in the Middle East and its potential impact on the global economy pushed the U.S. Dollar Index to its largest weekly gain in over a month. The Federal Reserve noted that trade policies are still evolving, making it premature to assess the economic impact of tariffs.
ATFX | 12h 28min atrás
ATFX Market Outlook 20th June 2025

ATFX Market Outlook 20th June 2025

U.S. markets were closed on Thursday for the Juneteenth holiday, but the escalating airstrikes between Israel and Iran continued to stir markets. Reports indicate that former President Trump will decide within two weeks whether the U.S. will intervene, raising concerns over a broader conflict and boosting safe-haven sentiment.
ATFX | 3 dias atrás
ATFX Market Outlook 19th June 2025

ATFX Market Outlook 19th June 2025

Following the Fed’s decision and Powell’s comments suggesting elevated inflation and a slower path of easing, U.S. Treasury yields trimmed losses. The dollar strengthened against most major peers except the yen, with the DXY briefly breaking above the 99 level.
ATFX | 4 dias atrás
ATFX Market Outlook 18th June 2025

ATFX Market Outlook 18th June 2025

Soft U.S. retail sales and industrial production in May point to a weakening economy. U.S. stocks closed lower on Tuesday as the Israel-Iran conflict entered its fifth day, deepening investor anxiety. The U.S. military is deploying fighter jets to the Middle East. The Dow Jones fell 0.7%, the S&P 500 dropped 0.84%, and the Nasdaq declined 0.9%.
ATFX | 5 dias atrás
Aussie Rebounds, Dollar Dips Amid Tensions | 17th June, 2025

Aussie Rebounds, Dollar Dips Amid Tensions | 17th June, 2025

On June 17, 2025, global markets remain volatile as Israel-Iran tensions escalate into a fifth day of conflict, with Iran threatening to close the Strait of Hormuz, boosting WTI crude to $70.60. Gold (XAU/USD) retreats below $3,400 to $3,390, pressured by USD strength (DXY at 98.20) but supported by safe-haven demand.
Moneta Markets | 6 dias atrás
ATFX Market Outlook 17th June 2025

ATFX Market Outlook 17th June 2025

U.S. three major indices rose on Monday, with the Dow up 0.77%, the S&P 500 up 0.9%, and the Nasdaq up 1.5%, as oil prices eased and concerns over inflation diminished. The dollar strengthened against the yen and Swiss franc but weakened against other currencies. Gold dropped over 1% after hitting an eight-week high, and oil fell $1 amid hopes of a ceasefire between Iran and Israel.
ATFX | 6 dias atrás