U.S. Chicago PMI & Pending Home Sales
The U.S. has just released ADP job data with positive numbers but fails to bring volatility in to the FX markets. Now traders are looking for the U.S. Chicago PMI (1345 GMT/1915 IST) and Pending Home sales (1400 GMT/1930 IST) results for the further directions.
Chicago PMI is a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. It is derived via a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
While Pending Home Sales is a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect.
Let’s see how Gold has reacted during the previous data release:
Pending Home Sales:
- Gold trades marginally lower after robust ADP job data.
- Today pair made intraday high at $1,764 and low $1,753 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1,768 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,754 will check further supports.
Take a look and do trade wisely!