Cole: Euro-Dollar Parity Could Come, but Not Quickly

The transcript discusses the potential for euro-dollar parity, influenced by monetary policy changes and the Trump presidency. It examines risks to the dollar, including protectionist trade impacts and US earnings repatriation. The currency market's rapid movements, particularly against the yen, are analyzed, with a focus on interest rate expectations. The outlook for the ECB and Bank of Japan policies is also considered, highlighting the influence of US rate expectations on global markets.

What is one potential factor that could lead to the US dollar reaching parity with the euro?

• A stronger euro

• An increase in European exports

• Protectionist trade policies

• A decrease in US interest rates

What has been the recent movement of the dollar against the yen?

• It has decreased by 5% in a month

• It has decreased by 10% in a month

• It has increased by 10% in a month

• It has remained stable

What is the current market expectation for the Federal Reserve's interest rate hikes?

• A hike in December and two next year

• No hikes this year

• One hike this year and one next year

• Three hikes next year

What is the expected impact of the ECB's future monetary policy?

• Marginal adjustments compared to US rate expectations

• A significant impact on US rate expectations

• No impact on the currency markets

• A rapid return to tapering

What is the anticipated debate in the early part of next year regarding the ECB?

• Further extension of the QE program

• Immediate tapering of the QE program

• Increase in interest rates

• Reduction in fiscal policy measures