FXStreet (Bali) - Daniel Katzive, FX Strategist at BNP Paribas, notes that the USD may struggle to regain its momentum following a very weak set of data releases in the US during Q1.
Key Quotes
"All signs point to Q1 having been a very weak quarter for US activity, with our economists’ Q1 estimate now tracking at just 0.8% q/q annualised. Focus for USD bulls now shifts to Q2, with the market hungry for evidence that the Q1 slowdown was weather-driven and temporary."
"However, most of the hard data due over the next week will continue to point back to Q1, including March CPI on Friday 17 April and March durable goods orders on Friday 24 April. Fed messaging will also be key, but the speaker calendar quiets down ahead of the 29 April FOMC meeting."
"As a result, the USD may struggle to regain momentum. We remain patiently short EURUSD and see opportunity to position for modest USDJPY upside at current level"