Manufacturing and Services in the Eurozone pushed six-year highs according to a flash estimate from IHS Markit. Economic growth gathered further momentum in March as demand in both manufacturing and series sectors were strong. Employment growth also pushed close to ten-year highs, and the euro has strengthened on the news. The PMI reading for manufacturing in Germany also touched near 6-year highs as exports to the US, UK, and Asia fueled higher demand.

US Manufacturing PMIs took a turn for the worst in February, down to a five-month low. Durable goods orders for big-ticket items from dishwashers to airplanes increased in February, up 1.7% which beat analyst expectations of a 1.2% jump. The mix between these two prints having little effect on the USD as investors turn to focus on the healthcare bill.

President Trump has drawn a line in the sand, telling Republicans to either pass the bill today or be stuck with Obamacare. After the President’s ultimatum, the House is expected to vote on the healthcare act sometime today. If the bill passes, we may see a stronger dollar as markets would take this as a sign that Trump’s proposed tax and spending reforms will push through as well.

Despite being pushed from the headlines, Fed members will continue to be closely monitored, but no policy breadcrumbs were dropped today. Chicago Fed President Charles Evans focused on community development in a pre-recorded speech, while James Bullard of the St. Louis Fed centered his remarks on the balance sheet.

EURUSD:   PMI growth smashed expectations, fueling a stronger euro.

GBPUSD:  Sterling on the back foot as Theresa May prepares to trigger Article 50 next week.

AUDUSD:   Aussie dollar flat after some overnight weakness due to some risk-off trades.

USDCAD:  Oil concerns continue to weigh on the Canadian dollar, which is weaker against the greenback this morning despite political jitters stateside.

USDJPY:   The yen is mostly flat after some overnight moves failed to materialize into a trend. Risk appetite and US politics likely to drive this pair throughout the day.