Dollar Outlook for 2021 Still a Cyclical Story, RBC’s Lignos

The video discusses the impact of the reflation trade on the dollar, highlighting the cyclical nature of the dollar's outlook for 2021. It emphasizes the strength of the US recovery and its influence on global demand. The discussion also covers currency dynamics, focusing on the role of interest rates and fiscal stimulus, and the limited impact of government policies on currency levels. Finally, the video examines yield dynamics and trading strategies, noting recent dollar performance and potential tactical reversals.

What does the speaker suggest about the impact of nominal interest rates on currency?

What tactical reversals is the speaker looking for in the currency market?