Goldman Sachs Strategist Says Canadian Dollar 'Preferred Pick'

The video discusses the impact of the Federal Reserve's hawkish policies on the US dollar, highlighting expected rate hikes. It examines the influence of US rate differentials on Asian currencies, particularly Japan and China, and the role of commodity prices in currency performance, with a focus on Canada and Australia. The sustainability of Japan's yield curve control amidst global inflation is analyzed, along with the Bank of England's approach to managing inflation and its effects on sterling.

What has been the primary driver of the US dollar's strength in recent months?

• Rising oil prices

• Increased consumer spending

• Federal Reserve's hawkish policies

• Trade agreements with Europe

How does the rate differential between the US and Japan affect the Japanese yen?

• It strengthens the yen

• It weakens the yen

• It has no effect on the yen

• It causes the yen to fluctuate unpredictably

Which country's central bank is expected to keep pace with the Federal Reserve in terms of rate hikes?

• Japan

• Canada

• China

• Australia

What is a potential consequence for Japan if global inflation continues to rise?

• Japan will maintain its yield curve control indefinitely

• Japan may abandon yield curve control

• Japan will lower interest rates further

• Japan will increase its bond purchasing program

How has the Bank of England's approach to inflation differed from other central banks?

• It has prioritized unemployment over inflation

• It has focused on currency devaluation

• It has been slower to acknowledge inflation

• It has been more aggressive in raising rates