USD on a firm footing – BBH

Analysts at BBH note that the US dollar is mostly firmer today and the Sterling is the main exception as it edges higher, though well within yesterday's broad range.  

Key Quotes

“If the consolidative tone persists, sterling may hold below $1.4200.  Initial support is seen near $1.4140.  The euro is also experiencing an inside day, but seems pinned near yesterday's lows near $1.2375.  The week's low was set on Monday near $1.2335.  The dollar has also been confined to yesterday's range against the yen.  It finished last week below JPY105 and dipped a bit lower at the start of this week, but has remained above that support since Monday's recovery.”

“The dollar-bloc currencies are softer.  The Australian dollar is slipping lower and near $0.7655, it has made new lows for the year.  Some observers are linking the pressure on the Aussie to the LIBOR pressure.  The US dollar bounced higher after approaching support near CAD1.28 yesterday.  It is now near CAD1.29.  We peg resistance in front of CAD1.2930, and a break could see a quick test on CAD1.30.”

“US data today includes another revision of Q4 17 GDP.  A somewhat stronger inventory build is expected to lift the annualized pace of growth to 2.7% from 2.5%.  February advanced goods trade balance and retail/wholesale inventories will be used to estimate Q1 18 GDP, but are unlikely to alter ideas that the curse of a weak Q1 GDP (since the Great Financial Crisis) may were evident this year too despite the tax cuts and spending increases.”