SaxoTV

Hardy: Why USD is looking vulnerable

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Friday’s non-farm payroll data looked okay on the surface but December’s low earnings growth put pressure on the dollar. Saxo's John Hardy says it looked like USD might be "consolidating pressure" early Monday but  it has since rallied somewhat. Hardy notes the greenback is back in a "choppy period" ahead of some key events like next week's ECB and the FOMC the following week.

Hardy says the Japanese Yen on the other hand is showing some resilience with focus on 118 support in USDJPY. For EURJPY, he says 140 is a key focus particularly ahead of the Bank of Japan's meeting next week as well as the ECB's.

Meanwhile he points out that the Euro has shown further weakness despite standing up against some of the Scandinavian currencies. In particular, Hardy says it has been collapsing against the dollar. Factors such as this month's Greek election will also have a huge impact on EUR, he says.