CNBC Survey Points To Improving US Data This Week

The U.S. dollar will likely draw support from expected improvements in economic data this week, culminating in Friday’s closely-watched jobs numbers, according to CNBC’s latest survey of currency strategists and traders.

Importantly, key economic numbers for March – which will include Tuesday’s ISM (Institute of Supply Management)’s manufacturing index and its services sector equivalent on Thursday – should be largely free of the distortions caused by recent extreme winter weather, and will likely show resilience in the broader economy.

“The U.S. seems to be shaking off the ‘winter weather blues’, with the broad complexion of the data looking overall less discouraging than the picture of consistent weakness seen in February,” said Sean Callow, senior currency strategist at Westpac Bank.

On average, economists believe around 200,000 more Americans joined the workforce in March, according to Reuters estimates. Meanwhile, the ISM manufacturing index is forecast at 54.0, up slightly from the February level of 53.2.

“I suspect the payrolls will be another pro-risk number, endorsing the more hawkish Federal Reserve,” said Simon Grose-Hodge, head of investment advisory, South Asia, at LGT Bank.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza