ISM Manufacturing Preview: Greenback strength to continue?
Today, June 1st, will be released in United States the ISM Manufacturing PMI at 14:00 GMT, which should have a decline to 50.5 from the 50.8 that was registered in April, according to the latest consensus for May. During the 2016, Manufacturing surveys has shown some mixed tone in their results, as during Q1 it had only one positive reading (March: 49.5, from 48.2) and Q2 is having an average of 51.3 in the reading. Recent US regional manufacturing's surveys has been showing some negative tone and eventually it could end with a negative reading for May, which also can have a little negative effect on the US Dollar.
However, a reading above the forecast (50.5) and the 50.8 could give another bullish momentum to the greenback, which has been gaining some strength in recent days. An example can be seen on the USD/CHF daily chart, where we should note that it broke a secondary bearish trend line and it's heading to the parity zone. That positive reading of ISM Manufacturing could make that possible, as the technical overview is favoring to that scenario. 50-SMA and 200-SMA are both heading to the upside, where another bearish trend line is placed (around 1.0030 price zone).