Today’s focus is likely to be on the US Dollar again. Antje Praefcke, FX Analyst at Commerzbank, analyzes how the ISM’s February Manufacturing PMI could impact the greenback.
“The ISM index for February is likely to attract increased attention.
The market expects that the index will remain under the expansion/contraction mark of 50, but is likely to recover a little. That would constitute a rather more positive signal for USD.”
“However, as the market has already gone a long way in its expectations the upside potential in USD is likely to be limited.”
“A small excursion towards the lows seen at the start of the week might be seen again. However, as the Eurozone inflation data is due for publication tomorrow, I would be cautious about excessive Dollar gains.”
“I am more inclined to expect a strong reaction if the ISM index were to disappoint. In that case, EUR/USD is likely to rise a little further.”
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