SEB: USD Could Weaken In 3Q

The video discusses the RBNZ's anticipated rate hike and its impact on the market, comparing it to the Fed's challenges with inflation and employment recovery. It analyzes the Kiwi dollar's performance against the USD and the economic forecast, highlighting the policy divergence with the RBA. The discussion also covers the Fed's response to inflationary pressures and the potential impact of the delta variant on the economic outlook, emphasizing the risks of elevated market expectations.

What is the main reason the RBNZ is considering a rate hike?

• To align with the Fed's policies

• To weaken the Kiwi dollar

• To address high inflation concerns

• To support the economy during the pandemic

How did the Kiwi dollar perform against the USD according to the transcript?

• It fell by 1%

• It remained stable

• It rose by 1%

• It rose by 2%

What is the RBNZ's stance on the need for monetary stimulus?

• It is no longer needed

• It should be reduced gradually

• It should be increased

• It should be maintained for a longer period

What does the transcript suggest about the Fed's view on inflation?

• Inflation is not a concern

• Inflation is expected to rise further

• Inflationary pressures are transitory

• Inflation is a long-term concern

What potential risk is mentioned in relation to the US economic outlook?

• The delta variant

• Rising oil prices

• A housing market crash

• Trade tensions with China