Rabobank's Foley Finds G-10 Markets 'Focused on Politics'

The video discusses the market focus in 2017, emphasizing the unusual focus on politics in G10 markets due to events like the French elections, Brexit, and Trump's presidency. It explores the impact of these political events on the euro, particularly in relation to the French elections. The discussion shifts to the fundamentals of euro trading against the dollar, considering purchasing power parity and market expectations. The video concludes with an analysis of US fiscal policy under Trump, its impact on interest rates, and the market's reaction.

What was considered the dominant theme affecting G10 markets in 2017?

• Natural disasters

• Political events

• Rate differentials

• Technological advancements

How did the market react to the political climate in Europe towards the end of the previous year?

• It focused on technological changes

• It became more nervous

• It remained unchanged

• It became more optimistic

According to purchasing power parity (PPP), where should the euro be trading against the dollar?

• Between 1.40 and 1.50

• Between 1.00 and 1.10

• Between 1.16 and 1.33

• Between 1.10 and 1.20

What was the market's sentiment towards US fiscal policies in the early weeks of the year?

• Indifferent

• Disappointed

• Optimistic

• Confused

What could potentially lead to a stronger euro according to the final section?

• Improving German economic data

• Weaker German economic data

• Increased US interest rates

• Continued easy monetary conditions