Dollar Faces Upside Risk, CBA's Haddad Says

The video discusses the current strength of the US dollar, driven by monetary policy divergence and trade tensions. The Fed's interest rate hikes contrast with other central banks' cautious approaches, supporting the dollar. Trade tensions and emerging market financial stress pose risks to global growth, potentially benefiting the dollar. The Bank of England's rate decisions are influenced by Brexit uncertainty, while the Australian dollar faces challenges from shifting global economic conditions.

What are the two main themes currently supporting the strength of the US dollar?

• Technological advancements and tourism

• Oil prices and unemployment rates

• Brexit and inflation

• Monetary policy divergence and trade tensions

How do trade tensions affect global economic activity?

• They boost investor confidence

• They create headwinds to global growth

• They stabilize global supply chains

• They reduce financial market volatility

What is a potential risk for the Bank of England's interest rate normalization process?

• Decreasing unemployment

• High inflation rates

• Strong economic growth

• Brexit uncertainty

What has been a positive factor for the Australian dollar?

• Decreasing foreign investments

• Favorable balance of payments

• High inflation rates

• Rising unemployment

What is causing a shift in the risk outlook for global growth?

• Technological advancements

• Trade tensions and financial market stress

• Increased tourism

• Stable oil prices