The US dollar regained some of its lost ground as the first quarter of 2018 ended. Is this greenback comeback going to last or are is it only a correction? The first week of Q2 features a full buildup to the Non-Farm Payrolls and also other top-tier events. Here are the highlights for the upcoming week.

US Q4 2017 GDP was upgraded to 2.9% in the final read, better than had been expected. The Fed’s favorite inflation measure, Core PCE, ticked up to 1.6% y/y, meeting the forecasts, but still an upgrade. Trade tensions eased as the US and China made more positive signs regarding averting a trade war. This allowed the US dollar to recover despite a mixed stock market and a drop in bonds. End-of-quarter flows were probably also in play. UK GDP remained low in the final read while Canada’s figure disappointed with an outright contraction in January. Germany’s inflation came out below expectations, weighing on the euro.


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