The week ahead features Q1 GDP and the FOMC decision, two events widely expected to weigh on the USD dollar but if we look beyond the story begins to improve. Markets open the week relatively unchanged. CFTC positioning showed a small squeeze on dollar longs and a retreat of yen shorts. Our Premium EURUSD long at 1.0605 hit its final 1.0880 target on Friday. Other Premium trades: NZDUSD, GBPAUD, EURGBP and GBPUSD are currently in progress.
Friday's durable goods orders was another black eye for the US dollar and the ninth consecutive soft reading. Weak shipments underscored how soft Q1 GDP will be, with economists downgrading estimates to around 1.0% but many in the market are looking for worse.