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Sandy's Winds Could Lift the Dollar: Pro

Wednesday, 31 Oct 2012 | 4:27 PM ET
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Natural disasters often boost risk aversion, and Sandy is probably no exception.

Superstorm Sandy is one for the record books, and storms like this typically - no surprise - make investors jittery. Stephen Andrews, managing director of Admiral Markets Australia, says that could be good news for the dollar.

"You find when these sort of events happen that it can affect markets in terms of a bit of risk off mentality," he told CNBC.

The upcoming nonfarm payroll report could also boost the buck, Andrews says. He says projections of a roughly 124,000 increase in jobs are quite achievable. If the report actually exceeds those expectations, "we might see," he says, "that the U.S. is growing despite a lot of global concerns." And that would be good for the dollar.

Expect More Choppy Trading as Sandy Weighs on FX: Pro
Stephen Andrews, Managing Director of Admiral Markets Australia, says investors should expect more swings in currency markets as the impact from Sandy starts to spill over to the U.S. economy.

What currency doesn't Andrews like right now?

He says the yen is in iffy territory. When the Bank of Japan announced new easing moves earlier this week, they were hoping to curb the currency's strength.

"They wanted a decrease in the value of the yen and it had an opposite effect," he says. That's hardly auspicious for the Japanese currency.

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