FX Daily Wrap Up

This week should set a tone for the US Dollar. The main releases that bear watching include the FOMC statement, Gross Domestic Product report, the Institute of Supply Management Manufacturing survey and the Non-Farm Payrolls report. Of these four, the ISM report and non-farm payrolls will command the most attention, as they are the two most market-moving indicators for the US Dollar. While the USD is in little fear of a rate hike, this week’s news may show an overall trend for the first quarter. Looking at our neighbors, the British pound underperformed both the US Dollar and Euro after the Bank of England’s monetary policy member Blanchflower said that inflation could fall back below the Bank of England’s 2% goal by the end of the year. Blanchflower cited a general slack in the labor market, which has pushed wage growth to lower-than-expected levels. Expect to see the Majors make large moves based on the US data.
David Hilgeman XPRESSTRADE Analyst