SaxoTV

Hardy: Beware the sense of panic in the markets

1,585 views
February 11, 2016 congress, dollar, dollar index, dollar outlook, dollar trading, dollar weakness, dollar yen, dollars, equities, equity, equity market, equity strategy, eur, euro, eurusd, eurusd trends, fed, fed chairman, fed policy, fed rates, federal policy meeting, federal reserve, federalreserve, foreign exchange, foreign exchange market, foreign exchange strategy, forex, forex market, forex markets, forex saxo bank, forex trading, fx, fx crosses, fx forex, fx investing, fx market, fx markets, fx options, fx strategy, fx trade, fx trade idea, fx trading, fx volatility, fxmarkets, janet, janet yellen, janet yellen fed, janet yellen federal reserve, janet yellen rates, janet yellen testimony, japanese yen, jpy, jpy crosses, saxo bank, saxo tv, trading, tradingfloor.com, us dollar, us dollar index, us economy, usd, usdjpy, usdjpy currency, usdjpy risk, usdjpy trading, yellen, yen, yen crosses, yen dollar, yen strength
Even before Janet Yellen had got to her feet, Saxo's John Hardy was dismissive of the testimony she was presenting to US Congress. The market was crying out for help, but he says she ingored it, and failed to inspire confidence. This highlights his belief that central banks have lost the ability to sway markets with guidance. 

This Thursday the markets are nervous with USDJPY exploding to the downside and EURUSD to the upside. But it's not all about dollar weakness. Hardy says it's stronger against the Aussie dollar and the Kiwi plus some EM currencies. It's all about liquidity in the markets, he explains, with USD liquidity very deep.

John's concern is that there is a sense of panic and the markets could move another leg lower. He warns that traders need to be extra cautious particularly as key support levels in USDJPY and EURUSD have already been broken. He believes the market needs a big bazooka to stop this move downwards. "Certainly the Fed and Yellen are not providing that support," he concludes.