📰 Fundamentals & Macro·intermediate

ISM (Institute for Supply Management)

Also called: ism manufacturing, ism services, ism pmi

The US version of PMI — manufacturing and services indices published by the Institute for Supply Management.

ISM is the original US business survey, published by the Institute for Supply Management. It comes in two versions: ISM Manufacturing PMI (released first business day of the month) and ISM Services PMI (released a few days later). Both use the same 50-line concept as global PMI surveys — above 50 = expansion, below 50 = contraction. ISM is one of the most-watched US data releases. The Fed reads it. Bond traders read it. Equity traders read it. A surprise ISM Manufacturing or Services number can move EUR/USD 50+ pips in seconds. The ISM also publishes sub-components: New Orders (forward-looking demand), Employment (a preview of NFP a few days later), and Prices Paid (inflation pressure at the wholesale level). Pros parse all three for hints about what's coming.

Real trade example

The Jul 2024 ISM Manufacturing print of 46.8 (much weaker than expected) triggered a sharp dollar selloff and pre-positioned the market for the recession-fear-driven NFP miss two days later that sent the yen surging.

Related terms

PMI (Purchasing Managers Index)

intermediate

A monthly survey of business managers measuring expansion or contraction in manufacturing and services — readings above 50 mean growth.

NFP (Non-Farm Payrolls)

beginner

The US monthly jobs report — one of the most market-moving economic releases in forex, always the first Friday of the month at 8:30am ET.

GDP (Gross Domestic Product)

intermediate

The total dollar value of all goods and services produced by a country in a given period — the broadest measure of economic health.

Unemployment Rate

beginner

The percentage of the labor force that is jobless and actively seeking work — a key measure of economic health.

Interest Rate

intermediate

The cost of borrowing money set by a central bank — the single most important driver of currency strength in modern forex markets.

RBNZ (Reserve Bank of New Zealand)

intermediate

The central bank for New Zealand — sets the official cash rate that drives NZD currency pairs.

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