Prior +0.9%HICP +0.7% vs +0.8% y/y expectedPrior +0.8%France’s headline annual inflation eased slightly in December to 0.8%. But looking at the breakdown, the drop can be attributed to a more pronounced decline in energy prices, particularly those of petroleum products. On the other hand, food prices are seen accelerating a little to 1.7% – up from 1.4% previously. Meanwhile, services inflation continues to keep steady just above the 2% threshold at 2.2% in December.The monthly estimate shows a 0.1% increase in consumer prices, following a 0.2% decline in November. And in breaking that down, it can be attributed to the seasonal rebound in prices of services, particularly in those of transport, and, to a lesser extent, to the slight rise in food prices.Overall, this won’t really get the ECB moving with the main focus on price pressures and inflation staying on Germany. Stagflation concerns in Europe’s largest economy remains the biggest risk to deal with at the moment. So, that will be eyed more closely and we will be getting the German numbers later in the day.EUR/USD is trading steadier today at 1.1732 currently, up just 0.1%, with the dollar keeping a touch softer across the board. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight France’s inflation drop to 0.8% is a mixed bag for traders: energy prices are down, but food costs are rising. This divergence matters because it highlights the ongoing volatility in consumer prices, which could impact monetary policy decisions. Traders should keep an eye on how this inflation data influences the European Central Bank’s (ECB) stance on interest rates. If energy prices continue to decline, it might provide some leeway for the ECB to maintain or even lower rates, which could strengthen the euro against other currencies. However, rising food prices could signal underlying inflationary pressures that might force the ECB to act more aggressively. Watch for the euro’s reaction around key levels—if it breaks above recent resistance, it could indicate bullish sentiment. Conversely, if inflation expectations rise, we might see a shift in market sentiment that could lead to increased volatility across forex pairs. Keep an eye on the upcoming ECB meetings for potential shifts in policy direction based on these inflation trends. 📮 Takeaway Monitor the euro’s performance against key resistance levels as inflation dynamics shift, especially ahead of ECB meetings.

Prior 55.6Composite PMI 55.6Prior 55.1The headline reading is a 12-month high and reflects a divergence in trend in Spain’s manufacturing and services sectors. The latter continues to post solid growth, with this being the 28th straight month of the PMI estimate keeping above the 50.0 threshold. A solid increase in new business and commercial work is helping to underpin the momentum in December.That being said, inflationary pressures picked up on the month with input prices rising at its quickest pace since September. So, this will be a sticking point and one that could become a bit of a concern for the ECB if it continues to keep up; alongside Germany that is.HCOB notes that:“Spain’s private sector economy closed the year on a strong note, driven primarily by the services sector. While services maintained its growth momentum, manufacturing continued to lose steam. This sectoral divergence can be traced to several factors: external headwinds such as intensifying competition from China, continued trade frictions, and the economic weakness persisting in key partner countries – most notably Germany and France – are weighing on industry. In contrast, domestic strength, supported by a labour market bolstered through immigration, is underpinning services. “Price dynamics also reflect these contrasting demand conditions. In markets with robust demand, prices tend to rise more sharply, whereas weaker demand keeps price growth subdued. On average in 2025, output prices in manufacturing remained flat—quite the opposite of services, where prices climbed well above their historical trend. Elevated services inflation, fuelled by demand but also strong wage growth, was also a key topic at the latest ECB meeting and remains a source of concern for policymakers. “Looking ahead to 2026, the outlook for services remains upbeat: order books are solid, and recent data suggest that last month’s dip in export orders was likely a temporary blip. Companies are responding by expanding their workforce, with a notable increase in permanent contracts, a clear sign of confidence in medium-term demand.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Spain’s PMI hitting a 12-month high is a big deal for traders, especially with SOL at $137.83. This strong PMI reading signals robust growth in the services sector, which could lead to increased consumer spending and economic stability. For traders, this means potential bullish sentiment in related markets, particularly in sectors tied to consumer discretionary spending. If SOL continues to hold above $130, it could attract more buying interest, especially if broader market trends align with this positive economic data. Watch for any shifts in the PMI that could indicate a slowdown, as that might trigger profit-taking or a shift in sentiment. On the flip side, if the manufacturing sector shows signs of weakness, it could dampen the overall economic outlook, impacting SOL and other correlated assets. Keep an eye on the upcoming economic reports and any shifts in the PMI readings for clues on market direction. 📮 Takeaway Monitor SOL closely; if it stays above $130, bullish momentum could build, especially with strong PMI data.

KEY POINTS:US dollar weakened after soft US ISM Manufacturing PMIMarket pricing for the Fed remained unchanged around 62 bps of easing expected by year-endUS NFP the main event this weekJapanese inflation remains above target but not calling for urgent actionBoJ still focused on wage growthTraders expect roughly two rate hikes from the BoJ this yearFUNDAMENTAL OVERVIEWUSD:The US dollar weakened across the board yesterday following a soft US ISM Manufacturing PMI. The data wasn’t really surprising, but after a strong rally in the European session, the greenback gave back all the gains. In terms of macro, nothing has changed in these two weeks. The latest NFP and CPI reports came both on the softer side and the market is still pricing 62 bps of easing by year-end. The data in December was taken with a pinch of salt given the shutdown related issues, but the next releases will give us a clearer picture. The market expects the Fed to cut in March at the earliest, so we will need very soft data this month to force them to act sooner. Nonetheless, if the data continues to come in on the softer side, the market will likely increase the total easing for 2026 and that should weigh on the US dollar.On the other hand, if the data shows strength, traders will likely pare back their rate cut bets and that will likely offer the greenback some support.JPY:On the JPY side, the latest Tokyo CPI data surprised to the downside. Inflation has been hovering above the BoJ’s 2% target but never called for urgent actions. The central bank is still placing a great deal on wage growth, so wage data and spring wage negotiations remain key. The market is pricing 42 bps of tightening this year, which translates into roughly two rate hikes. Traders don’t expect any policy action before June. Therefore, we will need some strong wage data or surprisingly high inflation prints to see traders bringing forward rate hike expectations. USDJPY TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that we have a strong support zone around the 154.50 level where the price got rejected from several times in the past weeks. From a risk management perspective, the buyers will have a better risk to reward setup around the support to position for a rally into the 160.00 handle next. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the major trendline around the 151.00 level.USDJPY TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that we’ve had a messy price action lately, not giving us any clear level where to lean on. We have a minor upward trendline that could act as support. The buyers will likely step in there with a defined risk below the trendline to position for a rally into new highs, while the sellers will look for a break lower to increase the bearish bets into the 154.50 support.USDJPY TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we’ve been trading inside what looks like a broadening wedge. The buyers will likely keep on leaning on the bottom trendline to keep pushing into new highs, while the sellers will either look for a breakout or keep shorting around the top trendline. The red lines define the average daily range for today.UPCOMING CATALYSTSTomorrow we have the US ADP, the US ISM Services PMI and the US Job Openings data. On Thursday, we get the Japanese wage data and the latest US Jobless Claims figures. On Friday, we conclude the week with the US NFP report.VIDEO This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source

Prior 55.0Composite PMI 50.3 vs 53.8 expectedPrior 53.8Key findings:Activity growth moderates, despite stronger rise in new business Inflationary pressures cool Confidence fades while jobs growth remains slight Comment:Commenting on the PMI data, Nils Müller, Junior Economist at Hamburg Commercial Bank, said: “The Italian private sector cooled as 2025 drew to a close. After manufacturing slipped back into contraction, services also cooled markedly, with the HCOB Italy Services PMI falling to 51.5 in December from November’s just over two-and-a-halfyear high of 55.0. While the index remained above the 50.0 threshold, signalling continued growth, the pace was modest and weaker than the full year average. “The slowdown in activity came despite a notable improvement in demand conditions. New business inflows rose sharply and at the fastest rate in 20 months, driven largely by domestic clients and successful marketing efforts. Export orders slipped fractionally, indicating a sustained but only mild setback in international sales. Employment growth remained slight, as firms balanced capacity with workloads, and backlogs continued to decline. “Price dynamics offered some relief. Input cost inflation eased from November and fell below trend, even though wage pressures and higher operating expenses persisted. Service providers were able to pass on some of these costs, but charge inflation softened, pointing to margin pressures. Business confidence stayed positive, with expectations for higher activity in 2026 being supported by marketing investment and the Milan-Cortina Winter Olympics, though sentiment slipped further below its historical average. “Overall, December’s PMI data indicate that Italy’s private sector enters 2026 with growth intact but having lost steam. The service sector remains the key driver of expansion, underpinned by strong domestic demand, while manufacturing continues to weigh on the composite index. With confidence slipping and external headwinds persisting, the outlook for early 2026 is more cautious.” This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The recent PMI data shows a cooling in Italy’s private sector, and here’s why that matters: With the Composite PMI dropping to 50.3 from a prior 55.0, traders should be wary of potential economic slowdown signals. This decline indicates that while new business is rising, overall activity growth is moderating, which could lead to reduced consumer spending and investment. Inflationary pressures easing might sound good, but it often reflects weakening demand rather than a robust economy. For forex traders, this could impact the euro, especially if the trend continues, as it may prompt the ECB to reconsider its monetary policy stance. Watch for key support levels in EUR/USD around 1.05; a break below could trigger further selling. On the flip side, if confidence rebounds or job growth picks up, we might see a quick reversal. Keep an eye on upcoming economic indicators and sentiment reports to gauge whether this PMI dip is a one-off or part of a larger trend. The next few weeks are crucial for assessing the euro’s trajectory, especially against the backdrop of broader EU economic conditions. 📮 Takeaway Monitor EUR/USD around the 1.05 support level; a break could signal further downside as PMI data reflects a cooling economy.

Prior 51.4Composite PMI 50.0 vs 50.1 prelimPrior 50.4The French services sector and overall business activity slumped to stagnation towards the end of last year, as demand conditions were more or less static in December. While there were some reports of increased client interest, firms noted that uncertainty led prospects and customers to hold back on spending.On the price front, things continue to ease further amid more benign input price inflation with operating expenses rising at its softest pace that was well below the long-run trend seen since the survey began in 1998. So, there’s that.HCOB notes that:“France’s private sector ended the year in stagnation. The past year has been marked by uncertainties such as external headwinds emanating from U.S. policy and Germany’s economic slowdown, but most principally the domestic challenges relating to France’s fragile political environment. “Business activity in the services sector stalled at year-end. As anticipated, the surprisingly strong November figures now appear to have been a temporary anomaly. Alongside weaker activity, new orders disappointed, particularly export orders, with panellists citing subdued demand from the US market. “Sentiment among service providers deteriorated in December, with the corresponding index falling to its lowest level in five months. Employment and capacity utilisation also reflect the sector’s muted outlook, as hiring has been virtually flat since November, while outstanding business continued to decline. “The sluggish economy is evident in pricing dynamics. Services firms have little pricing power and, in some cases, are resorting to discounts to support sales. This is squeezing margins, as input costs remain elevated, driven primarily by persistent wage pressures.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The stagnation in France’s services sector is a red flag for traders: demand is flat and uncertainty looms. With the Composite PMI dropping to 50.0 from a prior 51.4, this signals a potential slowdown in economic activity that could ripple through related markets, particularly in the Eurozone. Traders should keep an eye on how this affects the euro against major currencies, especially if the trend continues. If the PMI slips further, it could lead to bearish sentiment in the forex market, prompting a reassessment of positions in EUR/USD. Watch for any upcoming economic indicators or central bank comments that could provide clarity on the situation. The real story here is whether this stagnation is a temporary blip or a sign of deeper economic issues ahead, which could impact trading strategies significantly. 📮 Takeaway Monitor the EUR/USD closely; a continued decline in PMI could trigger bearish moves, especially if it drops below 50.

Prior 53.1Final Composite PMI 51.3 vs 51.5 prelimPrior 52.4Key findings:Business expectations drop to lowest since last April Comment:Commenting on the PMI data, Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said: “Business activity in the private service sector grew for the fourth month in a row. Although the pace of expansion has slowed slightly, it can still be described as relatively robust. In this environment, companies also found themselves compelled to hire more staff than the month before, after having even reduced employment at times in 2025. The moderate growth in new business suggests that the start to the new year could be satisfactory. “Service companies are in a position to pass on the rise in costs to their customers, albeit only partially. Taken on its own, this points to favourable, but not spectacular demand conditions. The higher costs are likely to be primarily the result of continued above-average wage increases. This is because most service activities are relatively labour- and wage-intensive. This cost problem is unlikely to disappear in the coming year, as the main cause is demographic change and the resulting labour shortage, which continues to prevail in many sectors despite the generally weak economy. “Confidence among service providers has deteriorated significantly with regard to the next twelve months. The index of future activity has slipped to its lowest level since last April, putting it around three-and-a-half points below the long-term average. This may be due to dissatisfaction with the government, as many companies believe that the reforms that have been adopted are heading in the wrong direction or are not comprehensive enough. However, experience shows that sentiment can also change quickly, so this is only a snapshot of the current situation.” This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The latest Composite PMI data shows a decline in business expectations, and here’s why that matters: With the final Composite PMI at 51.3, slightly below the preliminary estimate of 51.5, traders should be cautious. This drop signals a slowdown in growth momentum, particularly in the private service sector, which has been a key driver of economic activity. The fact that business expectations have hit their lowest since last April raises concerns about future spending and investment. If this trend continues, we could see a ripple effect across related markets, particularly in equities and commodities, as investor sentiment shifts. For forex traders, this data could strengthen the case for a more dovish stance from central banks, potentially impacting currency pairs like EUR/USD or GBP/USD. Watch for key support levels in these pairs, as a sustained decline in business sentiment could lead to increased volatility. Keep an eye on upcoming economic indicators that could further influence market direction, especially if they align with this bearish sentiment. 📮 Takeaway Monitor the EUR/USD and GBP/USD pairs closely; a sustained decline in business sentiment could trigger volatility and shift central bank policies.

Prior 53.6Composite PMI 51.5 vs 51.9 prelimPrior 52.8Both the services and composite readings are three-month lows as overall business activity in the euro area eased towards the end of 2025. A slower rise in demand for euro area goods and services was the main headwind on the month. Meanwhile, there were contrasting fortunes on price developments especially with that seen in Spain (hot) and France (cold). But at the balance, input cost inflation moved up to a nine-month high. So, that reflects some uptick in price pressures at the sector level but the pace of increase in output charges was unchanged from November at least.HCOB notes that:“The eurozone services sector has grown for seven months in a row. The pace of expansion slowed in December, but overall, the picture looks good. Companies have even increased their staffing levels more strongly, and new business indicates that they remain on a growth path. Overall, the recovery in services gained momentum in the fourth quarter, which is a good basis for starting the new year with confidence. “The European Central Bank continues to monitor service inflation very closely, ECB President Christine Lagarde said at the interest rate press conference in mid-December, and rightly so, because cost inflation in this sector rose again in December. This in turn means that wages, which are the largest cost item for most service providers, will continue to increase at an above-average rate. This development, which was also accompanied by slightly higher inflation in sales prices, is, in our view, the most important reason why the ECB has not implemented any further interest rate cuts and does not appear to be planning any. “The composite PMI averaged a visibly higher level in the last three months of the year than in the third quarter. Against this backdrop, GDP growth is likely to have accelerated. The decisive impetus is coming from the service sector, while manufacturing has slowed down. In 2026, the service sector should remain on a moderate growth path. The manufacturing sector is likely to benefit from higher demand for defence equipment and construction machinery, which are needed, among other things, to implement infrastructure projects in Germany. As a result, economic growth of well over 1 percent should be possible again, but is certainly not overwhelming.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The recent drop in the Composite PMI to 51.5 signals a slowdown in euro area business activity, and here’s why that’s crucial for traders right now: With both services and composite readings hitting three-month lows, this could indicate a weakening economic outlook, impacting the euro’s strength against major currencies. A slowdown in demand for goods and services suggests that inflationary pressures might ease, which could influence the European Central Bank’s (ECB) monetary policy decisions. Traders should keep an eye on the euro against the dollar, particularly if the euro falls below key support levels. If the PMI continues to decline, it could lead to a bearish sentiment in the forex market, prompting institutions to adjust their positions accordingly. Watch for reactions in related markets, like commodities, where a weaker euro could affect pricing dynamics. On the flip side, if the PMI rebounds in the coming months, it could reignite bullish sentiment, making it essential to monitor upcoming economic data releases closely. The immediate focus should be on the next PMI report and how it aligns with market expectations. 📮 Takeaway Watch the euro closely; a drop below key support levels could signal further bearish moves, especially if upcoming PMI data continues to disappoint.

There’s only a couple out for now and I will update the list below as and when the releases come about, which tend to be roughly around the same time. Here’s what we got so far:North Rhine Westphalia CPI +1.8% vs +2.3% y/y priorSaxony CPI +1.9% vs +2.2% y/y priorBavaria CPI +% vs +2.2% y/y priorBaden Wuerttemberg CPI +% vs +2.3% y/y priorSome backdrop from earlier in the day:”As for the German report later, the estimates point to a cooling in headline annual inflation. The expectation is for a 2.1% reading, down from 2.3% in November. But again, the core annual inflation estimate is the more important detail to look out for. And that stood at 2.7% in November, just a little down from 2.8% in October. It’s still on the higher side though, keeping stubborn above the 2% threshold.”At the balance so far, we can roughly see the national reading come in around 1.9% to 2.0% as compared to 2.3% in November last year. But again, the key thing to pay attention to will be the core annual inflation reading instead. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight CPI data from North Rhine Westphalia and Saxony shows a downward trend, and here’s why that matters: The slight decline in year-over-year CPI figures—1.8% for North Rhine Westphalia and 1.9% for Saxony—indicates a potential easing of inflationary pressures in Germany. This could influence the European Central Bank’s (ECB) monetary policy decisions, especially if this trend continues. Traders should keep an eye on how this data affects the euro against major pairs, particularly the USD, as a weaker euro could lead to increased volatility in forex markets. If inflation continues to cool, we might see a shift in interest rate expectations, which could impact both forex and crypto markets, especially if traders begin to price in a more dovish stance from the ECB. But don’t overlook the potential for a bounce-back in inflation if energy prices rise again. The real story is how these figures might affect market sentiment in the coming weeks. Watch for the next CPI releases and any comments from ECB officials, as these could provide crucial insights into future monetary policy shifts. 📮 Takeaway Monitor the upcoming CPI releases closely; a continued decline could signal a shift in ECB policy, impacting euro pairs and broader market sentiment.

Prior 51.3Final Composite PMI 51.4 vs 52.1 prelimPrior 51.2Key findings:Business activity expansion remains marginal Renewed upturn in new orders Input cost inflation accelerates to seven-month highComment:Tim Moore, Economics Director at S&P Global Market Intelligence, said: “Lacklustre business activity growth continued across the UK service sector at the end of 2025. Moreover, the speed of expansion was softer than signalled by the earlier ‘flash’ survey in December and lower than seen on average in the second half of the year. “The most positive development was a renewed upturn in new business intakes, following a slight decline during November. Modest growth of incoming new work was attributed to tentative signs of a recovery in client confidence after an extended period of pre-Budget gloom. Order books were also supported by a marginal rebound in export sales. “However, survey respondents still noted sales headwinds linked to weak UK economic prospects, alongside challenging operating conditions due to factors such as sharply rising business costs and soft demand in major overseas markets. Worries about squeezed margins and broader growth prospects contributed to another marked reduction in service sector employment during December. “Meanwhile, inflationary pressures across the service economy strengthened at the end of the year. Input prices rose to the greatest extent for seven months, and output charge inflation rebounded from November’s recent low, despite the subdued demand backdrop.” This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The slight dip in the Composite PMI to 51.4 signals a cooling in business activity, and here’s why that matters: A PMI reading above 50 indicates expansion, but the drop from the preliminary 52.1 suggests that growth is slowing, which could lead to cautious sentiment among traders. The uptick in new orders is a silver lining, but with input cost inflation hitting a seven-month high, margins could be squeezed, impacting profitability. This scenario might prompt traders to reassess their positions in UK equities and the GBP, especially if the inflation trend continues. Watch for how the Bank of England reacts in upcoming meetings, as any hints at policy shifts could create volatility in the forex market. On the flip side, if the new orders trend continues, it could provide a foundation for future growth, making it essential to monitor this metric closely. Key levels to watch in the GBP/USD pair would be around recent support and resistance levels, as a break could signal a shift in market sentiment. 📮 Takeaway Traders should monitor the GBP/USD pair closely, especially if new orders continue to rise, as this could influence future market sentiment and Bank of England policy.

KEY POINTS:US dollar weakened after soft US ISM Manufacturing PMIMarket pricing for the Fed remained unchanged around 62 bps of easing expected by year-endUS NFP the main event this weekFor the AUD, inflation data tomorrow is keyGiven the hawkish expectations, a soft report will likely trigger bigger movesSoft data should weigh on the Australian dollar, while hot figures should keep supporting itThe market is pricing a 32% probability of an RBA hike in February and a total of 42 bps of tightening by year-endFUNDAMENTAL OVERVIEWUSD:The US dollar weakened across the board yesterday following a soft US ISM Manufacturing PMI. The data wasn’t really surprising, but after a strong rally in the European session, the greenback gave back all the gains. In terms of macro, nothing has changed in these two weeks. The latest NFP and CPI reports came both on the softer side and the market is still pricing 62 bps of easing by year-end. The data in December was taken with a pinch of salt given the shutdown related issues, but the next releases will give us a clearer picture. The market expects the Fed to cut in March at the earliest, so we will need very soft data this month to force them to act sooner. Nonetheless, if the data continues to come in on the softer side, the market will likely increase the total easing for 2026 and that should weigh on the US dollar.On the other hand, if the data shows strength, traders will likely pare back their rate cut bets and that will likely offer the greenback some support.AUD:On the AUD side, the RBA at the last policy decision sounded more hawkish following a series of higher-than-expected inflation reports. The central bank also discussed whether a rate hike might be needed at some point in 2026. The market is pricing a 32% probability of a rate hike at the upcoming meeting in February with a total of 43 bps of tightening seen by year-end. Tomorrow, we get the monthly Australian inflation data. Even though the RBA focuses more on the quarterly reports, traders will likely take clues from the monthly report. That should influence rates expectations and impact the Australian dollar. Given the hawkish expectations, a soft report will likely have a bigger impact on Australian assets. In such a case, we will likely see the AUD weakening across the board and the Australian stock market rallying. On the other hand, another hot report should keep on weighing on the stock market and support the Australian dollar.AUDUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that we have formed a rising wedge, which is confirmed by the RSI divergence. These patterns are divergent in nature as they form when momentum fades. The price generally either bounces from the bottom trendline before rallying into new highs or breaks below the trendline and falls into the base of the wedge, which in this case is around the 0.66 handle.AUDUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the price action inside the wedge. The buyers will likely step in around the bottom trendline with a defined risk below the 0.6660 level to position for a rally into the 0.68 handle next. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 0.66 handle.AUDUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we have a minor support zone around the 0.6705 level. If the price gets there, we can expect the buyers to step in with a defined risk below the support to position for a rally into the top trendline. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the bottom trendline. The red lines define the average daily range for today. UPCOMING CATALYSTSTomorrow we have the Australian monthly inflation data, the US ADP, the US ISM Services PMI and the US Job Openings data. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the US NFP report. This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The US dollar’s recent weakness following the soft ISM Manufacturing PMI is a crucial signal for traders. With market pricing for Fed easing remaining steady at around 62 basis points by year-end, the focus shifts to the upcoming Non-Farm Payroll (NFP) report. A disappointing NFP could amplify the dollar’s decline, especially if it reinforces the dovish sentiment surrounding the Fed’s policy. For AUD traders, tomorrow’s inflation data is pivotal; a soft report could lead to significant volatility in the AUD/USD pair. Keep an eye on the 0.6400 level for potential support or resistance, as it could dictate short-term trading strategies. On the flip side, if the NFP surprises to the upside, we might see a swift rebound in the dollar, which could catch many off guard. So, it’s worth monitoring how these economic indicators play out, as they could set the tone for the rest of the week. 📮 Takeaway Watch the NFP report closely; a soft reading could push the dollar lower and impact AUD/USD around the 0.6400 level.