The dollar index hit the year's low Thursday on expectations the Federal Reserve will again print money next month, also known as quantitative easing (QE).Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“[The markets are] so currency dominated,” Cashin told CNBC.
“If today’s initial [jobless] claims number came out about 4 weeks ago, the S&P 500 would be down 8 points, but because of the way currencies are dominating everything, they’re keeping stuff up.”
Cashin noted that he sees some key resistance levels on the S&P around 1,183 to 1,187. If stocks are able to surpass the level, they could have a “little rocket ride.”
“Throughout the centuries, many nations have moved their way out of debt by inflating and debasing their currency,” said Cashin. “Let’s hope this isn’t purposeful, but so far, with all the talk about QE2 being a love boat, it looks like it’s really there to debase the dollar.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Oct. 4, 2010)
More on Currency and Markets:
CNBC Data Pages:
Thursday's Top Dow Gainers (as of this writing):
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No immediate information was available for Cashin or his firm.