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Why the dollar’s strength is here to stay
The dollar’s strength looks here to stay; that’s John Hardy’s view after a better US jobs report last week increased speculation the Fed will start tapering sooner rather than later. Saxo Bank’s Head of FX strategy says the greenback’s recent rally is looking “real” and “broad”.
But traders need to watch out for Thursday and Janet Yellen’s appearance before a Senate Committee. Ms Yellen is likely to replace Ben Bernanke as Chair of the US Federal Reserve. John says it’s not on many people’s radar but it could be an “event risk” for the dollar.
As for Professor Yellen, John isn’t expecting any policy indications at the hearing. She’ll be there largely to highligh her suitability to the job and to defend the Fed’s policies up to now.
That, says John, will be a tough task given that he believes none of the
Fed members has covered themselves with glory over the past few years.
01:35 minutes
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