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Hardy: Why USDJPY could hit new heights
USDJPY could hit new highs this week because the carry trade "is on", according to Saxo Bank's Head of FX Strategy, John Hardy. With tapering not ruled out before Christmas, John says it depends what currency pair you use to judge the dollar's relative strength.
USDJPY appears to be in a league of its own. John says when there's a pro-carry environment, the pressure will be strong on the yen and the dollar could break new highs because JPY is the favourite currency to sell in those circumstances.
John also says that the markets appear to want to push the euro higher against the dollar, however, longer term he has a "hard time" seeing it considerably stronger as such strength isn't supported by economic fundamentals in the eurozone. The euro rally we've been seeing in recent weeks "has headwinds", he says.
01:47 minutes
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