All eyes are on whether the U.S. dollar will see significant movement following the release of the U.S. ISM report

All eyes are on whether the U.S. dollar will see significant movement following the release of the U.S. ISM report

01.03.2023

In yesterday’s U.S. currency trading, the U.S. dollar weakened after the Richmond Fed’s February Manufacturing Index, released yesterday, came in at -16—well below the market forecast of -5. The USD/JPY pair fell by approximately 120 pips from 136.911 to 135.715, marking a pullback following a new high for the year.With the release of the ISM Manufacturing Index scheduled for today (U.S. time), we will be closely monitoring whether the market reacts significantly depending on the ISM results.

European currencies weakened, with the Swiss franc emerging as the weakest, after fourth-quarter real GDP growth figures released yesterday came in below both market expectations and the previous reading.The USD/CHF pair rose by just under 100 pips, from 1.3559 to 1.3658. It is now only about 130 pips away from reaching this year’s high. However, a range resistance zone lies at the level approximately 130 pips above the current price, so we should watch to see if the price consolidates for a while after the rally.

Today’s schedule includes Turkey’s Manufacturing PMI and UK Nationwide House Prices at 4:00 PM, Swiss Retail Sales at 4:30 PM, Swiss Manufacturing PMI at 5:30 PM, French Manufacturing PMI at 5:50 PM, German Unemployment Rate at 5:55 PM, UK Manufacturing PMI at 6:30 PM, and UKremarks by BOE Governor Bailey and remarks by German Bundesbank President Nagel, at 9:00 PM the US MBA Mortgage Applications Index, at 10:00 PM the German Consumer Price Index, at 11:00 PM remarks by Kashkari, President of the Minneapolis Fed, at 12:00 AM the US ISM Manufacturing PMI, and at 12:30 AM US weekly crude oil inventories.We will be watching closely to see if the US dollar reacts significantly to the ISM release.