It's time for Jordan Kotick, Global Head of Technical Strategy at Barclays Capital. Check out Closing Bell at 315p et for his appearance.
Q: In Q4, you suggested there would be a strong/stable US Dollar heading into 2010. What did you see and are you still seeing the same US Dollar positive signs?
A: Overall, the patterns, sentiment and positioning had reached bearish extremes against US Dollar in Q4. We believed that that position, like many others in Q1 was likely to be squeezed. Secondly, spreads were blowing out in Europe. First Greece, recently Spain, now Portugal. These charts suggested not only increased volatility but that the market was pricing in problems going forward. This is a US Dollar positive but also, a negative for the Euro. So while the Euro has been depreciating against other majors, it has also done so against currencies outside the Eurozone like the Polish Zloty.