💲USD retreats ahead of the ISM

Tuesday's session is full of PMI readings from around the world. The final European indices did not impress investors, as most of them dropped below the preliminary readings. Now it's time for the United States. The ISM index for January is expected to fall to 57.5 pts from the previous reading of 58.5 pts. The likely decrease is related to further problems with Omicron and ongoing supply chains disruptions. It is also worth paying attention to the employment sub-index, which may be crucial in the context of Friday's NFP data, although in this case the service sector, for which ISM will be announced on Thursday, will be more important. Today at 2:45 pm GMT the final reading of the US PMI index will also be released, which initially showed a decline.

The dollar weakened significantly against most major currencies during today's session. Sentiment has improved recently, but in the case of the dollar it may be related to the recent suggestions from 4 Fed members who indicated that they supported interest rate hikes at a pace that would not hurt the economic recovery. Such words may indicate that the Fed may not be as aggressive as the market priced it a few days ago. Thanks to this, we can also observe a strong rebound of precious metals today. In this case, it's worth paying attention to silver, which gains 2.5% and returned above $ 23 per ounce.

EURUSD rose sharply on Tuesday, however Less than 2 hours before the ISM release, the dollar is starting to recover. The zone near 1.1250 and 38.2% retracements may act as potential support. Source: xStation5