Barclays's Macleod on Fed Shift, Dollar Strength

The video discusses recent market volatility, focusing on the Fed's impact on the dollar and central banks' responses. It covers expectations for the Bank of England and the outlook for sterling. The discussion highlights the increase in market sensitivity to data, particularly labor market data, and its implications for risk and the dollar.

What was the general expectation of clients regarding the Fed's actions before the FOMC meeting?

• A significant increase in interest rates

• A bullish dollar outlook

• A bearish dollar outlook

• No change in dollar outlook

What is the expected stance of the Bank of England regarding tapering?

• Aggressive tapering

• No tapering at all

• A benign stance with a low risk of hawkish surprise

• Immediate tapering with multiple dissenters

How has the Fed's recent actions affected market volatility?

• Eliminated volatility completely

• Injected volatility into upcoming events

• Decreased volatility significantly

• Stabilized volatility at historical highs

What is the potential impact of strong labor market data on the dollar?

• It would cause the dollar to crash

• It would support the dollar

• It would have no impact on the dollar

• It would weaken the dollar

What is the bigger risk if the payroll report is weak?

• A stronger dollar

• Increased investment in risk assets

• A rapid economic recovery

• A Fed policy mistake leading to a risk-off move