Intouch Capital Markets: Short-Term USD Strengthening

The video discusses the reaction of the dollar to recent CPI reports, suggesting that the reaction function may not have changed significantly. It explores the divergence in currency markets due to varying policy trajectories and highlights the impact of central bank dynamics on currency sensitivity. The discussion also covers the effects of pandemic variants and vaccination progress on FX markets, particularly in Australia and New Zealand. Finally, it examines market expectations for the RBNZ's upcoming decisions and potential investor reactions.

What factors are influencing the current rise in CPI according to the speaker?

How does the speaker view the relationship between the pandemic and inflation?

What is the speaker's perspective on the future of the dollar's strength?

What currencies does the speaker believe will underperform in the current economic climate?

What does the speaker suggest about the correlation between COVID-19 trends and FX markets?