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Hardy: Reasons why USD could move to the weak side
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The US dollar has its back against the wall, says Saxo's head of FX Strategy, John Hardy. He says it needs to survive some key resistance levels in EURUSD, USDCHF and USDJPY in order to avoid a breakthrough to the weak side.
The markets are also responding to the People's Bank of China's decision to cut its reserve requirement ratio by 1%. The move has caused both the Aussie and the Kiwi to rally, but John says the cut should really signal worries of a weaker rather than a stronger Asian economy.
On Friday, the Eurogroup meets, with Greece yet again top of the agenda. Hardy says that, ironically, the more concerns there are about Greece, the more support there is for the Euro. He notes that EUR verses both JPY and USD is trading stronger.