Dollar Strength: Key Implications For MENA FX

Yesterday's market turmoil has sent the euro tumbling back through support at US$1.3750/EUR, a development which could herald a period of renewed risk aversion, depending on today's non-farm payrolls data and the weekly closes on a number of key global markets. This is in line with BMI's long-held view that what we believe to have been a mismatched technical-fundamental picture (that has driven the rally since March 2009) could lead to a sharp correction and a renewed wave of deleveraging, which could benefit the dollar and take its toll on commodities.

To read the full article, please choose one of the following options: