Credit Agricole Research notes today's Fed speakers, with Powell, Clarida, Barkin, Bullard, Evans and Kashkari all scheduled to speak.
"Thus Fed commentary should continue to have more influence on the USD than data at the current juncture. This could be the case at times as several US data releases continue to be postponed by the ongoing US government shutdown. The shutdown is now on day 20, one day short of the longest US government shutdown, and progress on a resolution appears elusive with President Trump walking out on a meeting with key Democrats yesterday, which he described as a “waste of time”," CACIB notes.
"A prolonged shutdown may also complicate the already uncertain Fed outlook as the Fed has placed greater emphasis on data-dependency at this stage in the monetary policy cycle. Several Fed speeches and the latest FOMC minutes released yesterday have already noted a patient approach to further rate hikes, and less visibility as a result of delayed data releases supports the case for patience.
For now, the Fed’s overall tone has been interpreted by markets as dovish and has weighed on the USD," CACIB adds.