Forex Today: USD lifted by Trump, a busy calendar ahead

An eventful Asian session, with Trump trade ruling roost and adding to the overnight strength seen in the greenback across the board. While the treasury yields also regained poise amid overall risk-on environment, in wake of Trump’s boost to the infrastructure program and his commitment towards pro-growth policies. The Aussie remained underpinned by better-than expected Australian Q4 GDP data as well Caixin Chinese manufacturing PMI report.

Moving on, we have a busy economic calendar ahead, with the European session filled with manufacturing PMI releases from across the Euro area and UK, alongside Germany’s jobs and inflation data. In the NA session too, we have a flurry of macro news from the US docket, of which the ISM manufacturing PMI and core PCE price index data will hold the key, while Canada has current account data, followed by the Bank of Canada (BOC) policy decision. Last, but not the least, FOMC member Kaplan is scheduled to speak at Paul Quinn College, in Dallas.

Main topics in Asia

White House releases Trump's speech excerpts: "We are developing a historic tax reform"

The White House has released the following excerpts from President Donald Trump's first address to a joint session of Congress, as prepared for delivery, the Associated Press reports. 

Trump calls for Congress to approve legislation to produce $1 trillion investment in infrastructure

As part of his speech to Congress, US President Trump has called for Congress to approve legislation that produces $1 trillion investment in infrastructure, which will be financed through public and private capital.

China's Feb Caixin PMI: Growth picks up

China Caixin Manufacturing PMI for February came at 51.7 vs 50.8 last, with new business increasing at a faster pace amid solid upturn in new export sales, while employment declined at softest rate in two years.

Australia's Q4 GDP: Major beat on expectations

Australia's Gross Domestic Product (QoQ) for Q4 came at 1.1% vs 0.7% exp and -0.5% last, while the yearly reading registered 2.4% vs 1.9% exp and 1.8% last.

Fed’s Bullard: No need to be aggressive with rate hikes

More comments crossing the wires from St. Louis Fed President James Bullard, as he continues to speak on the monetary policy program.

Key focus for the week ahead                                                  

EUR/USD back below 5-DMA as USD recovers Trump-led losses

Looking ahead, markets will continue to assess Trump’s rhetoric, as attention turns towards fundamentals, with the final manufacturing PMI reports up on the sleeves from the Euro land, followed by the German Prelim CPI data and US dataflow.     

GBP/USD - Offered above 50-DMA, clocks fresh 3-week low

GBP/USD ran into fresh offers above the 50-DMA level seen at 1.2397 and dropped to 1.2363; the lowest since February 7.

Goldman Sachs raised odds of March Fed rate hike to 60%

Analysts at Goldman Sachs increased the probability of a March Fed rate hike to 60% versus 30% seen previously.