Markets continue to tread water ahead of the more important risk events later this week – the ECB meeting tomorrow and US Payrolls on Friday. There was little in the way of significant movement in bonds or currencies, while equities were a touch lower after having had hit fresh highs last week. Economic data was mute with the most significant piece being the US January Trade Deficit which increased to $48.5bn – although at a near five year high it was as expected. If repeated in February and March, net exports would likely detract from US growth and the Atlanta Fed has downgraded its Q1 GDPNow forecast to 1.3% from 1.8%. The outcome is also likely to give further currency to protectionist policies, where Trump’s Trade Adviser Peter Navarro indicated the US would make a reduction in the Trade Deficit its top policy focus noting that the U.S. faced a growing economic and potential national security risk from major trading partners. In other political news, House Republicans have proposed an Obamacare replacement plan while Trump also signed an updated travel ban with little reaction.