Forex Video : Dollar Overview

On CNBC Squawk Box ACM Advanced Currency Markets Chief Market Analyst Peter Rosenstreich gives an overview on USD,
notably on dollar/yen.

RSS VIDEO FEED

Name: Peter Rosenstreich
Position: Chief Market Analyst
Company: AC Markets
Date: 12/12/08
Time: 07:22 CET
Channel: CNBC Europe
Duration: 2 mins 10 secs
Interview with Peter Rosenstreich


Martin Baccardax
Let’s take a look at the foreign exchange markets this morning. A lot of movement across the
major pairings, particularly the Dollar: 1.33, you can see, trading against the Euro, 80 handle
and change on the Yen, and still record lows, again, for the Sterling against the Euro. Let’s
get into it straight away with Peter Rosenstreich. He is a Chief Market Analyst at Advanced
Currency Markets. Peter, good morning.

Peter Rosenstreich
Good morning.

Martin Baccardax
An 89 handle on Dollar/Yen. Are we in intervention territory?

Peter Rosenstreich
I think very much so. I think the rhetoric in Japan has really increased in recent days, and I
think we’re at that level where the BoJ and policy makers are very concerned about the effect
of the stronger Yen on the domestic economy which is already in pretty dire straits.

Martin Baccardax
Peter, we’ve been talking all week about the potential cracks in the dollar’s façade. Are we
finding them now? This is pretty weak territory.

Peter Rosenstreich
This is very weak, but I would take a step back a little bit about the grown optimism around
selling the dollar right now. I think this is more of a short-term response to some of the
changes in the US, primarily around the bail-out package which didn’t come through as well
as the weakening labour market and, basically, how the lack of bail-out plan is going to follow
through to the labour market and therefore through the US domestic economy. More than
anything else, I think it would be silly to think that the Eurozone is not also in a pretty
precarious situation and that the Euro is a better buy than the dollar at this point.

Martin Baccardax
I mean, the counter-intuition in the market has really got me scratching my head, Peter. We’re
looking at a lot of treasury buying and dollar weakness. The dollar gets weak off the back of
the government not spending money on the bail-out.

Peter Rosenstreich
Correct. There’s a lot of dislocation in the market right now. We’re also seeing the decoupling
between equity markets and foreign exchange. We’ve seen a pretty tight correlation recently,
and now we’re having a decline in the equity markets and the Dollar, which has been getting
strong on the back of that event, also getting weak. I think the market is really trying to come
to terms with itself right now. Today is going to be a very interesting day on the FX markets.

Martin Baccardax
I totally agree. Peter, thanks for your time this morning. Peter Rosenstreich, Chief Market
Analyst at Advanced Currency Markets.




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