A break of the range of estimates for ISM Services PMI should prompt extended market move

<p>The ISM Services PMI (Purchasing Managers' Index) is due Tuesday, 5 December 2023 at 10am US Eastern time.</p><p>The range of estimates is 50.5 to 53.5, results outside of this range should be more likely to generate an extended market response.</p><p>Its released by the Institute for Supply Management (ISM)</p><ul><li>based on a survey of purchasing managers in the services sector, they are asked to report on various aspects of their business activity, including new orders, inventory levels, production, supplier deliveries, and employment.
</li><li>the headline index is derived from individual indices from such components, at differing weighs for each component</li><li>above 50 percent indicates that the services sector is generally expanding, while below 50 suggests that it is generally contracting</li><li>the distance from 50 percent gives an indication of the strength of the expansion or contraction</li></ul><p>The services sector constitutes a significant part of the U.S. economy, and the ISM Services PMI is closely watched as a key indicator of economic health.</p><p>A significant beat of the estimate will be viewed by traders as making near-term rate cuts from the Federal Open Market Committee (FOMC). A significant miss will be viewed as likely to hasten rate cuts. Expectations in the market are for a flurry of rate cuts from the Committee in 2024. We'll see.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.