U.S. Dollar Will Continue to Weaken, Says UBP’s Kinsella

The video discusses the recent rally in equity indices and the potential for a market pullback due to profit-taking. It highlights the ongoing strength in risk assets since March, supported by global monetary and fiscal stimulus. The speaker suggests that the dollar may weaken further as part of a typical pattern during economic recoveries, with central banks potentially moving towards yield curve control. This environment is seen as supportive for global and risky assets but negative for the dollar.

What is one reason mentioned for the recent downturn in the equity index?

• A sudden increase in interest rates

• Profit-taking by investors

• A new fiscal policy

• A decrease in global demand

What is a factor that supports the continuation of the rally in risk assets?

• Decreasing corporate earnings

• Monetary stimulus from central banks

• Rising inflation rates

• Increased geopolitical tensions

Why might some risk assets be considered expensive?

• Because of their high PNLs

• Due to high trading volumes

• Due to government regulations

• Because of low demand

What is expected to happen to the dollar during global economic recoveries?

• It tends to strengthen

• It remains stable

• It tends to weaken

• It becomes highly volatile

What action by the Federal Reserve is mentioned as supportive for global assets?

• Introducing new taxes

• Reducing quantitative easing

• Increasing interest rates

• Implementing yield curve control