US Breaking PMI Overview
The initial data for the US S&P World Purchasing Managers’ Index (PMI) for January is set to be announced today at 2:45 PM (Japan time).
Early estimates suggest that the US headline PMI increased more quickly, reflecting improvements in both the manufacturing and services sectors. The overall PMI for December stood at 52.7.
The flash US services PMI is projected to be 52.8, which is an uptick from December’s 52.5. Meanwhile, the manufacturing PMI is expected to rise to 52.1 from the earlier 51.8.
Stronger activity in the US private sector could bolster the US dollar (USD), whereas weaker results might weigh it down.
What impact could the US breaking PMI have on EUR/USD?
Currently, EUR/USD is trading steadily around 1.1738. Major currency pairs are showing a symmetrical triangle pattern on the daily chart, which suggests a broader decrease in volatility. This price is near the upper limit of a volatility contraction pattern around 1.1770, which has been developing since the multi-year high of 1.1919 reached on September 17th.
The 20-day exponential moving average (EMA) of 1.1689 has been edging up and remains below the current price, indicating support for a rebound. The slope is rising, adding strength to the short-term trend.
The 14-day Relative Strength Index (RSI) is at 57, considered neutral, having retreated from recent highs but still above the midline, suggesting stable momentum.
If the pair continues to move upward, it might reach 1.1800 and 1.1900 after breaking the January 20 high of 1.1769 in a decisive manner. On the downside, the 20-day EMA will play a crucial support role for this pair.
(The technical analysis in this story was created with assistance from AI tools.)
(This article was revised on January 23 at 13:09 GMT to clarify that the 20-day EMA serves as the primary support for the downside, rather than the upside.)
economic indicators
S&P Global Services PMI
The monthly Services Purchasing Managers Index (PMI) serves as a key indicator of business activity within the U.S. services sector. It’s significant for gauging the overall economic health as the services sector constitutes a large portion of the economy. This information stems from surveys conducted with senior executives in private service-sector companies. Their responses reflect any changes projected for the current month compared to the previous month, and can provide insights into trends in official data like gross domestic product (GDP), industrial production, employment, and inflation. A reading above 50 signals general expansion in the service economy, which is a positive sign for the US dollar (USD). Conversely, a reading below 50 suggests a decline in service activity, which is considered negative for the USD.
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Next release:
Friday, January 23, 2026 14:45 (Prel)
frequency:
monthly
consensus:
52.8
Previous:
52.5
