USD Faces Pressure from Key PMI Data Release Day

Multiple PMI releases scheduled for Monday could drive significant forex volatility, particularly for USD pairs. The European session will feature final PMI readings for the UK and major European economies, though market impact is expected to be limited unless substantial revisions occur. The main focus shifts to the American session with three critical releases: Canadian Manufacturing PMI, S&P Global US Manufacturing PMI (final), and the influential ISM Manufacturing PMI. Recent US manufacturing data has shown persistent weakness, with expectations pointing to continued contraction below the 50.0 expansion threshold. Any disappointment in the ISM data could weaken the dollar against major counterparts, particularly EUR/USD and GBP/USD. Traders should monitor the 50.0 level closely, as readings below this mark signal manufacturing contraction and could influence Federal Reserve policy expectations. Technical setups suggest USD pairs are at key inflection points ahead of these releases.