“The dominating theme in the market is yield. That's supporting the dollar and will continue to do so in the short term until the Fed signals it's thinking about the end of the rate cycle.”
“I don't expect them to outright sell dollars -- that would lead to a crash, which would hurt China. It may signal a less aggressive accumulation of dollar reserves.”
“The dollar is down because of anticipation of tensions in the region. When things start to get worse it's the dollar that weakens. It's more to do with risk aversion.”
“The market has its doubts that the new German government is going to be able to proceed with the necessary economic reforms, ... People aren't going to be buying the euro on the basis of this result, because we need to see some evidence that the new government will deliver.”
“There's a risk we get a bit of an overreaction to this result. We could still see reforms happening in Germany, and as the result becomes clearer the euro is likely to rebound.”
“The market has its doubts that the new German government is going to be able to proceed with the necessary economic reforms. People aren't going to be buying the euro on the basis of this result, because we need to see some evidence that the new government will deliver.”