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Hardy: Signs of support for the dollar
The dollar index is down around 0.8 percent for the week. Setting a fresh two-year low versus the euro, a fresh 8-1/2-month low against a basket of currencies and a two-week low against the yen.
The greenback has come under pressure after a disappointing U.S. jobs report ended any hope the Fed would taper its stimulus this year.
Saxo Bank's John Hardy says while the fed is on taper hold the market prefers the super liquid currencies like the euro and the yen in preference to the dollar. But it will be interesting to see if USD 1.38 area provides some resistance for the single currency.
He says dollar yen is a hopeless case of shrinking ranges and because there have been so many false starts to the downside we would need to see a break well below USD 97 before "we can get impression dollar yen is breaking down."
He thinks the markets have been too quick to pile into safe haven currencies and the only downside for the dollar is if the markets continue to focus on differential and QE.
01:45 minutes
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