U.S. Economic Data Should Continue To Impress, May Support U.S. Dollar – Barclays

This week’s U.S. economic data should continue to overall suggest growth, say analysts at Barclays Capital. “We are broadly constructive on the U.S. cyclical data this week, with stronger-than-consensus forecasts on durable goods, final fourth quarter GDP and Chicago PMI, with an expectation of a downside surprise for consumer confidence,” they say. Weakness in the eurozone should hamper the euro currency. “We continue to expect the euro to fall gradually in the coming months, with concerns about growth and the periphery keeping its risk premium elevated. We expect the U.S. dollar to do well against funding currencies (yen, Swiss franc and euro) in a world where U.S. economic growth remains stable and Fed policy is little changed,” they say. That could put pressure on gold as a higher U.S. dollar can weigh on the metal since gold is dollar-denominated and the two often move in opposite directions. 


Source:Kitco