Dollar Steadies Ahead of Critical Economic Data Releases

Global currency markets are bracing for a dense calendar of economic releases on Tuesday, including US ISM manufacturing data and European inflation figures. The outcomes will likely influence expectations for the Federal Reserve's next policy move.

The US ISM manufacturing index is expected to show continued resilience in the sector. A stronger index often boosts the dollar as it suggests a resilient economy and potentially higher interest rates.

Additionally, the JOLTs job openings data will provide a critical read on labor market tightness. A higher-than-expected number of job openings could signal persistent wage pressure, which might prompt the Fed to maintain a hawkish stance.