Nobody is buying dollars with a smile on their face they are doing so because their stop loss orders are being executed, said Nick Parsons, Founder & MD Simply Macro Strategies Research.

"This has got potential at least to get quite ugly," added Parsons.

Currently markets are trading at 90 on the dollar index, which is the highest in five or six weeks but if just stand back and take a bigger perspective on that, it is quite easy to imagine that it go back to where it started, he said. Nick Parsons Founder & MD Simply Macro Strategies Research.

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