The euro may be winning the unpopularity contest in the markets at the moment, but the dollar is close behind, according to David Bloom, head of foreign exchange strategy at HSBC.
He described the euro , which has continued its medium-term fall against the dollar this year after rallying slightly in February and June, as “the ugliest of all” — but maintained the U.S. dollar is far from beautiful.
The Eurodollar is also becoming less effective as a benchmark as investors move away from both currencies, Bloom argued.
“Investors are abandoning the euro and the dollar. We’ve been focusing on the Eurodollar as the bellwether but if you look at the dollar against other currencies like the Australian dollar or the rand, it’s actually weakening,” he told CNBC’s “ Squawk Box Europe ” Friday.
“You’ve got the ugliest of all, which is the euro, but the dollar is starting to look quite ugly as well. The Eurodollar as a benchmark isn’t working — people are selling the U.S. dollar now too because we’re heading towards elections and the fiscal cliff .”
“We’re stuck between Europe and the U.S. QE 3, 4, 5 – it’s like the Rocky movies!” he said, referring to a third, fourth or even fifth round of quantitative easing.Page 1 of 3 | Next Page