Today is a slow day but a telling one. At 10:00 this morning, the ISM Manufacturing PMI was at 48.7, lower than the consensus of 49. At 10:09, the RCM/TIPP Economic Optimum Index was down to 48.7 from a previous 50.0.
When the ISM Manufacturing PMI is above 50, that indicates that the manufacturer is taking more orders and growing, while a PMI below 50 reflects the opposite, that the manufacturer is seeing a decline.
According to Trading Economics, tariffs were a drag on trading conditions where higher costs, supply chain disruptions, and reduced competitiveness were cited as reasons for the slow down.
Seeing this potential slowdown, I decided to err on the side of caution and sell two EUR/USD contracts for a total of $.20. The contracts expire at 3:00 pm. I’ll inform you then how well they go.
Alton Drew
2 September 2025
Disclaimer: The above post is provided for informational purposes only. Trading can result in losses. Traders should consult with a trading professional before, during, and after the execution of a trade.
Lawyers Write the Bets. Bankers Sell the Bets. 