US: Focus remain on politics and data - BBH

Analysts at BBH explain that with the flurry of major US economic data out of the way, the FX market is searching for direction.  

Key Quotes

“It feels like it wants to pick up where it left off, and that’s resuming dollar sales.  But as we’ve noted before, the euro, yen, and sterling also come with their own set of baggage.  The FOMC meeting next week is as much of a non-event as a 25 bp hike can be.  Some are holding out hope that the Dot Plots will be revised higher, but we stand by our call that it makes more sense to keep them as is.”

“The White House has tapped market economist and television commentator Larry Kudlow to replace Gary Cohn.  Kudlow is cut from the supply side cloth, but has expressed opposition to the recently announced tariffs on steel and aluminum.  Kudlow has reportedly agreed to head up the National Economic Council, but an official announcement is due out later today.”

“During the North American session, the US reports some minor data points.  These include weekly initial jobless claims (228k expected), March Empire manufacturing index (15.0 expected), and March Philly Fed survey (23.0 expected).  The US also reports February import prices, which are expected to rise 3.5% y/y.  Late in the day, January TIC data will be reported.  There are no Fed speakers today.  Canada reports ADP data for February.”