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Future of Euro and U.S. Dollar

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  • Description

    BBH global head of currency strategy Marc Chandler gives his outlook for currencies and the markets.

  • Duration 2:43
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On this first day of the fourth quarter of the Euro rally came from.

Three week lows against the dollar but is there a danger ahead for the seventeen nation currency always seems like there is joining me now.

But trouble ahead of a currency strategy at brown Brothers.

Harriman and mark thank you so much for joining me OK the Euro off of three week lows against the US dollar I think -- we have the Spanish bank test it wasn't as bad as.

As as perhaps some thought it would be.

But how can we look at any strength in the eurozone right now.

I think any strengthen in the Euro it a selling opportunity for medium and longer term investors because the European debt crisis far from resolved.

I think we're gonna see it come back and as month progresses as Spain faces of two regional elections.

With a debt crisis it's morphing into a constitutional crisis has some of the independent regions want to leave show up.

It's been pretty resilient mostly like the 20200.

Day moving average around 12824.

Somewhere in net that's been pretty solid for -- -- -- -- But an army of people -- -- too -- moving average is down a bit suspiciously it has held recently you know or less on a closing basis at least you know what -- the 200 day moving average means it means it over the past -- today's -- -- On both sides of that.

But the question is if it falls through that level could it drop.

Significantly but I think the euro's been really rallying since late July -- the rally in the Euro is getting old in the tooth if you will get back it began -- off of 120.

Got above 130 and now I think we just pulling back.

I think to get pulled -- and in return -- to those moves came as we get further ahead as we see the European Decker has not resolved Spain still -- to ask for money and then after Spain.

It's still a bigger country -- sure illegally.

And after Italy behind Italy that we don't really see it quite yet is France -- no kidding in the latest ISM numbers out of -- was horrible.

What does the Fed policy due to the -- month.

I think a lot of people think they're quantitative easing is bad for current yeah.

And we understand the logic -- -- country is printing up more money printing up more money supply.

In currencies reflect relative money supplies.

Except they don't.

You look at the countries are pursuing quantitative easing.

Japan has been pursuing quantitative easing longer than the US in at the end of almost Brazilian currencies.

But at a British pound Bank of England engage in quantitative easing of the British pound a last week the week before -- -- -- -- -- down.

And so I think that they are -- and deduce what the Christian should do from first principles of economics.

-- just looking at induction look at the -- they're pursuing quantitative easing what does this mean for currencies I think there's other influences.

You know what happened November 2010.

But Federal Reserve announced quantitative easing two.

And what happened -- act within days -- -- announcement the dollar rights for six straight weeks yeah and so I think that we're progress or something similar happening this time.

Very good rather time already -- come back until -- lots going on as always much time to thank you so much appreciate it.

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