Saxo Group Videos

The US dollar has been under considerable pressure this week and Friday's nonfarm payroll jobs data is unlikely to give it much of a boost. That's according to Neil Staines, the Head of Trading for the ECU Group. Traders should be prepared for a knee-jerk reaction to a particularly good or bad print, he says, but he believes the dollar will remain weak for some time as economic fundamentals in the States appear to be worsening. 

Neil says the markets have completely discounted another rate rise from the Fed this year. America's superior growth, interest rate differentials and its safe haven status are all diminishing. He suggests the euro and the yen could be the ones to appreciate against the USD. However, that's the last thing the ECB or the Bank of Japan want. He suggests tough times ahead over the coming months and equities look particularly vulnerable as growth slows.