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It's not but right now the Euro is hovering near four month lows against the dollar as concern remains regarding Cyprus is long term outlook.
Our next guest says the currency still has a way to fall as the fear of contagion in Europe spread so.
-- you make money from the euros loss Eric Miller BI is senior technical strategist for four X and he joins me now and very simply.
I know I know that the big.
Money knows how to make money but when you're small person like me how can you take advantage of this do you have to play commodities and of the dollar getting stronger is that the way you delivered you have to start investing in currencies.
Well if you're looking for stronger dollar and you live in the US and you know your -- we long dollars if you wanna take an active approach you can open a currency trading account.
And we are looking for the -- to continue weakened because of the crisis in Cyprus.
And it's not to Cyprus but it's the broader in Arizona as a whole and what this means for the policy framework moving forward.
So what we're watching the dollar actually strengthen not only against the Euro but against the yen -- strengthening gets a whole basket of currencies.
This I would think and this is where you'll correct me.
Would bring down the price of -- oil should oil be falling in pricing yet we're watching it go up so what am I missing in the equation that's it seems out of.
Whack right now quite so the dollar strengthening against these other currencies like the Euro and the British pound -- Japanese yen a lot of that has to do with it.
Factors that are specific to those countries so obviously there's this ongoing crisis in the Euro -- the British pound in the UK they're facing a potential triple dip recession.
Current account figures due out tomorrow might show the largest current account deficit in the UK on record and in Japan.
The Central Bank there is actively weakening the currency with more printing.
So if the dollar's getting stronger could night in a simple way.
To try and make some money on that perhaps look at oil as an investment and yet oil's going up and I would think it should be going down if the dollar stronger.
Right -- commodities respond to and other factors so you know reverse sentiment as one as well and what we've seen in the US stocks are.
Have been elevated you know very -- made record highs essence he's climbing toward that level and generally when stocks and resentment in general are doing better -- you see commodities move higher as well.
So that's why -- you know that relationship with oil is his standard.
Oil strength and -- on on Monday when we -- the relief rally in Europe before the comments from the one finance minister who the other said shut out -- said we're potentially going to use this.
Bailout formula in the future should we need to do that.
We also saw the Euro strengthening I think it was actually -- about thirty to the dollar.
But then -- out.
You're saying it's going to continue falling how much for the couldn't go.
Well initially we did see that rally because -- it came to a deal however because of -- I guess the uncertainty with regards to how they're gonna handle.
They -- future bailouts -- -- alliance.
-- and we saw the bureau declined it fell through a key technical level which is a 200 day simple moving average around 12880 level and if it stays underneath there.
We think it can go down to on November lows as low as one point six and a half Erica Hillary we appreciate your being here on the Fox Business Network by the -- via --
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