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Hardy on tapering's winners and losers
We're looking at the dollar to continue to strengthen so long as we're still "risk on", so says Saxo Bank's Head of Forex Strategy, John Hardy. And he suggests ditching safe haven currencies could be a wise move. On Wednesday, the US Federal Reserve announced it was reducing its asset purchase programme by ten billion dollars a month, the so-called "taper".
John says he sees no reason why the Swiss franc or the euro should do particularly well over the coming months. He says the weakness of the Japanese yen, which is near five year lows, makes sense but he's a little surprised that it's not declined still further.
He also warns traders that the market in run up to Christmas could be treacherous and choppy. Everyone needs to be aware that volumes are low and liquidity is drying up.
01:45 minutes
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