Euro Won't Break Above This Dollar Ceiling: Chief Strategist

The euro fell below $1.19 for the first time in more than four years on Monday but recovered most of its losses as U.S. stocks rose slightly and strong German manufacturing data pushed investors to buy back the currency. Ashraf Laidi, chief market strategist at CMC Markets, discussed his insights.

“It seems that there are some nice numbers we had from Germany that helped the euro go back up, but we’re not expecting the euro to break above $1.2050 to $1.2060,” Laidi told CNBC.

“This Thursday is going to be very important, because all eyes are going to be on the ECB [European Central Bank]—whether it’s going to extend the auction maturity from 3 and 6 months to 12 months. And that will be key.”

Meanwhile, Laidi noted that if the dollar index finishes higher again this month, it will be its seventh consecutive monthly increase—its longest winning streak since 1971.

Scorecard — What He Said:

  • Laidi's Previous Appearance on CNBC (May 31, 2010)

Experts on the Euro:

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No immediate information was available for Laidi or his firm.