U.S. data this week—including durable goods orders and consumer confidence—will continue to reflect the impact of extreme weather, presenting a downside risk for the U.S. dollar, according to CNBC’s latest survey of currency strategists and traders.
“‘Team Econ’ has been doing a very poor job of forecasting the U.S. data right,” said Robert Rennie, Global Head of FX Strategy at Westpac Bank, who has a “bearish” view on the dollar this trading week. “So more pain to come.”
Though there may be a headline impact on the dollar from sub-par data, the recent spate of softer economic numbers—tainted by the adverse weather—isn’t likely to dissuade the Federal Reserve from altering the pace of its monthly asset purchases.