| Videos | Channels | Search |
Hardy: Four reasons euro dollar's nudging 1.40
The euro is trading just a few pips below the psychologically important USD 1.40 mark so why is it so relatively strong and how much further can it climb? Saxo Bank's Head of FX Strategy, John Hardy, says it's going to be fascinating to see whether it can break through that barrier. However, traders need to remember there's often "stickiness" surrounding these round numbers and a lot is going to depend on upcoming data, notably from the USA.
There are a number of reasons why we're at these levels. John says we've seen no real hawkish scenario from the US Federal Reserve and the ECB continues to sit on the sidelines. Another reason is down to reserve diversification. China and other emerging markets may be buying a lot of dollars but much of that is readjusted into euros to balance things out.
02:10 minutes
Tags: 1.40, business, china, currency, currency pairs, diversification, dollar, dollar's, dollars, ecb, emerging markets, eur, euro, euro dollar, eurodollar, european central bank, eurusd, fed, federal reserve, finance, fomc, forex, forex trading, fx, fx strategy, news, pboc, pips, reasons, reserve, reserves, saxo, saxo bank, saxo tv, trading, tradingfloor.com, tv, us fed, usa, usd, usdeur, video