Art Cashin: Why Markets Face 'Enormous' 1-Day Swings
The U.S. dollar rose on Thursday as policymakers around the world warned the economic recovery was fragile, prompting investors to take profits on gains in higher-yielding currencies and assets.
Art Cashin, director of floor operations at UBS Financial Services, shared his insights on the greenback and the stock markets.
“The dollar remains a heavy influence,” Cashin told CNBC.
“It isn’t as dominant as it was two or three weeks ago, but my great concern has been that if some kind of geopolitical event popped up…and people started to race to the dollar in a flight to safety, then you can get the markets moving in enormous amounts in a matter of a day or so. And that’s a bother to me.”
Cashin said the next week is going to be important for investors.
“We’ve got option expiration coming up next week, we’ve got some important cross-currents, and my feeling is that this [market] is a little ahead of itself,” he said.
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No immediate information was available for Cashin or his firm.