Dollar strength is peaking, according to Saxo's Steen Jakobsen, and he's just waiting for the catalyst to buy EURUSD. The bank's Chief Economist says the US Federal Reserve is set to raise rates in September but this does not necessarily mean a higher dollar level. He also thinks the euro is 'very over-sold' and with Greece not being such a huge problem as it was, there are fundamental reasons why EUR should start rising again.
Steen is keen to remind traders that this is a long-term view and that no trade is without risk. But he does believe that we're due for a paradigm shift in sentiment.