Corporate foreign exchange news

Forex market news: Dollar to climb 10% vs euro

Wednesday, 04 November 2009 09:39:48 GMT

The US dollar may climb ten per cent against the euro within the next three months, market analyst Marc Faber has claimed.
Speaking to Bloomberg in Istanbul, the Doom, Boom & Gloom author declared that the dollar may now have turned on the single currency after languishing for months.
The growing disparity between the two currencies has caused alarm in many quarters, with European Central Bank president Jean-Claude Trichet particularly vocal in his opposition to the strengthening of the euro against the dollar.
Looking forward, Mr Faber speculated: "I don't think that the dollar will be a strong currency, but you can have periods like in 2008 that the liquidity tightens."
He added that schisms between private sector liquidity and government stimulus programmes could create periods of acute volatility in the months to come.
In trading today (November 4th), the dollar was holding just below a one-month high against a basket of currencies tracked by Reuters.ADNFCR-2522-ID-19441839-ADNFCR
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