SaxoTV
USD: Bull or bear?
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Is the dollar starting to make its much vaunted comeback? It's recently been generally rising against its peers and was given a boost after Fed minutes indicated a more hawkish stance on possible interest rate rises in the States.
London-based trader Manoj Ladwa tells Saxo TV there's "certainly" room for the dollar to strengthen further this year. He explains we are seeing a "large amount of money" shifting around the world towards US equities for some time and this has increased demand for the dollar. In terms of an investment, Ladwa thinks the dollar will continue to be seen as a "safe haven asset" in the near term.
But one trader who is yet to be convinced is Ken Veksler. He has been a dollar bear for two years and says he'll certainly be gauging what Janet Yellen may say at the central bank symposium at Jackson Hole on Friday. For now, he is planning to shift his position from bearish to a "more neutral stance" and will keep a close eye on the macro data coming out of the US over the next few weeks, in particular the GDP revisions for the second quarter.
The Fed Chair Janet Yellen will deliver her address at Jackson Hole on Friday morning, whilst European
Central Bank President Mario Draghi will deliver his in the afternoon that same day.