USD faces pressure as ISM Manufacturing PMI awaited amid light EU data

USD trading remains subdued ahead of today's key US ISM Manufacturing PMI release, with markets expecting a reading that could significantly impact dollar positioning. Swiss CPI data kicks off the session, while ECB and Fed speakers are scheduled throughout the day, potentially providing monetary policy insights. The light European economic docket suggests limited volatility from EU data, keeping focus squarely on the US manufacturing sector's health. Technical indicators on major USD pairs show consolidation patterns, with traders awaiting catalysts for directional moves. The ISM Manufacturing PMI will be crucial in gauging US economic momentum and could influence Fed rate expectations. Market positioning suggests caution ahead of the data, with potential for sharp moves if the reading surprises significantly from consensus. Traders should monitor key support and resistance levels on major USD pairs for breakout opportunities following the data release.