The U.S. dollar rose against most major currencies on Friday, clawing off a one-year low against the euro as waning risk appetite cut demand for higher-yielding currencies. Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his market insights.
Cashin said the reflex rally in the dollar will cause equities to fall.
“Almost all the asset classes have been moving directly in relationship to the dollar,” said Cashin.
“You don’t even have to look at the news ticker anymore—you just tell me what the dollar’s doing and I can tell you what stocks, oil and gold are going to do. If the dollar finds a level and begins to reverse, that could cause trouble across many asset classes.”
Cashin added that he will be watching for any changes in market momentum three days before the end of September.
“A lot of this has been under-invested portfolio managers saying: 'My report card is due when October comes,'” he said.
“So three days before [the end of the month]...will be the day I’ll watch for.”
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No immediate information was available for Cashin or his firm.
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