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After Tuesday morning RB Australia expected kept interest rates unchanged, the volatility in the foreign exchange market in the early European session declined significantly. The major dollar currency pairs except AUD/USD traded on Tuesday within a narrow range. The us dollar and the market as a whole lacks drivers for the further movement.
Probably, this driver will be the publication in the first half of the American trading session (15:00 GMT) report of the Institute for supply management (ISM) manufacturing PMI USA. Economists expect the composite index for the service sector from the Institute for supply management (ISM) in January fell to 57.1 from 58,0 in December. Although a reading above 50 indicates growth in activity, the relative decline may have a negative short-term impact on the dollar.
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