Credit Agricole CIB Research expects US fiscal stimulus to be 'delayed and diluted' after the setback for the Trump reflation trade on the failure of the Republican healthcare bill.
On the USD front, CACIB expects Fed speakers and US data especially non-farm payroll to be back as the main drivers of the USD in the coming week which will help determine if the USD rally can be revived.
On the EUR front, CABIB warns that as uncertainty may increase again in the run-up to the French elections, short-term EUR downside risks persist.
On the AUD Front, CACIB prefers being short* via crosses noticing that China Caixin PMI data, the RBA meeting and Australian data could be supportive of such trades.
On the GBP front, CACIB notes that there is concern that Brexit may begin to bite into the data.
EUR/USD is trading circa 1.0660, USD/JPY is trading circa 111.30, AUD/USD is trading circa 0.7624, and GBP/USD is trading circa 1.2545.
Source: Credit Agricole CIB ResearchOriginal Article
