CNBC Video Clip: FX Outlook

Here is a video clip of my (short) appearance on CNBC’s Squawk Box on January 25 where I discussed the currency outlook.

“I seems to me that the correlation between the euro, say, and the yen and the U.S. stock market has really become decoupled. I think there’s three drivers really todya in the FX market: one is this new weakness in the yen, partly because of Japanese economic data, deflation still the dominant theme there, and a weak trade deficit reading earlier this week as well as jobs;  the ECD reporting that more European banks repaid their loans, their long-term repo operations, this morning, and it’s also tightening up conditions leading to higher interest rates in Europe, helping the euro, and the third thing is a weak sterling on the back of a disappointing GDP figure.”

 This piece is cross-posted from Marc to Market with permission.