SaxoTV

Knuthsen: Why EURUSD could hit 0.95 in a year

1,016 views
August 07, 2015 2015, 2016, chief investment officer, commodities, dollar, ecb, ecb qe, emerging market economies, emerging markets, equities, equities trading, equity, equity market, equity markets, equity strategy, equity trading, eur, euro, european central bank, eurusd, federal, federal reserve, global, hike, knuthsen, liquidity, liquidity cycle, market, market reaction, markets, qe, quantitative easing, rate hike, rates, reserve, saxo, saxo bank, saxo bank commodities, saxo bank currencies, saxo bank equities, saxo bank fixed income, saxo bank forex, saxo bank group, saxo bank saxo tv, saxo bank teis knuthsen, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo bank tv, saxo capital markets, saxo traders, saxo trading, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxobank.com, saxotrader, saxotv, saxowebtrader, teis, teis knuthsen, trade idea, trade view, trader, traders, trading, trading currencies, trading equities, trading floor, trading floor saxo tv, trading fx, trading stocks, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com insights, tradingfloor.com saxo tv, tradingfloorcom, united states, us, us dollar, us dollar rise, us dollar strength, us economy, us equities, us equities market, us equity market, us equtieis, us fed, us fed rate hike, us fed rates, us federal reserve, us federal reserve monetary policy, us federeal reserve, us markets, usd
Saxo Bank’s Chief Investment Officer Teis Knuthsen believes a US Fed rate hike is long overdue and thinks the Fed will move on rates this year. He looks at how a rate hike will impact emerging markets and commodities, US equities and not least the USD.

According to Knuthsen, things could get pretty ugly for emerging markets and commodities if the liquidity cycle tightens as a result of a Fed rate hike. A Fed move should be benign for US equities, which Knuthsen believes will starting climbing higher in coming weeks.

Finally, the US dollar stands to really gain from a Fed hike partly due to the divergence between monetary policy in the US and Europe with the Fed tightening policy while the ECB continues with its QE programme.