US Dollar steady in the green as traders face US ISM data

NEW YORK (July 3) The US Dollar (USD) is comfortably in the green halfway through the European trading session as for a few European countries, the Purchasing Manager Index in the Manufacturing sector contracted even on the final reading, making the EUR/USD dip lower. Markets meanwhile remain convinced that the US Federal Reverse and its Chairman Jerome Powell will deliver only one interest-rate hike and be done with the tightening cycle, even as he said multiple times last week that the Fed is committed to do at least two. On Monday, the Greenback advances again against most currencies after the firm correction on the back of PCE numbers on Friday.

Monday features a very short trading day ahead as traders will head out for the July 4 US national holiday.  Bond trading and the New York Stock Exchange (NYSE) will close at 17:00 GMT and will remain shut on Tuesday. This means that the regular economic calendar is very condensed toward the end of the week with the US Jobs report (NFP) on Friday. On Monday, a batch of data from the Institute for Supply Management (ISM) with focus on the Manufacturing sector is due at 14:00 GMT, broken down in the headline Purchasing Manager Index (PMI) and the Prices Paid, New Orders, and Employment subindexes.  

FXStreet