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Daily strategy - European woes will protect dollar
Whichever way you look at it, the US dollar fundamentals remain very poor and the employment data will trigger a renewed downward shift in US interest rate expectations. Given this backdrop, there should be a clear case for a dollar bearish outlook. The situation is, however, complicated by the fact that it extremely difficult to make a positive case for any of the major currencies. The Euro-zone is under extreme stress, Japanese debt problems will intensify while the UK sinks into the abyss. On relative grounds, there is still little justification for a very weak US dollar and near-term Euro gains are likely to ... (full story)