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Hardy: Not so Happy New Year for the euro

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The euro is off to a not so happy start to the New Year, while the dollar is really flexing its muscle. Saxo Bank’s John Hardy says this week could see further support for the greenback.

The euro starts the first full trading week of 2015 by hitting a nine-year low at USD 1.1864, breaking through the critical technical level of 1.20.

Head of FX Trading at Saxo Bank John Hardy says a convergence of different factors such as low liquidity in the market as well as speculation about a possible Greek exit from the EU’s common currency is driving the euro down.

Meanwhile, the dollar is seeing a powerful trend of strengthening mainly due to the divergence in monetary policies in the United States, Japan and the Eurozone. John says this first trading week will see a slew of critical US data, which could further support the dollar’s rise.