SocGen’s Jukes: Sit Back, Beware Volatility Supporting Dollar

The transcript discusses the current state of the dollar, market sentiment, and the potential for negative interest rates in the UK and US. It highlights the challenges faced by central banks in managing economic policy, especially in light of the pandemic. The conversation shifts from foreign exchange to fixed income, emphasizing the bond market's role and the implications of negative rates on economic stability.

What is the market's current consensus regarding the dollar?

• Neutral

• Bearish

• Uncertain

• Bullish

What is a major concern for the UK regarding negative interest rates?

• Rising unemployment

• Increasing inflation

• Strengthening the currency

• Attracting foreign capital

Why might the US resist adopting negative interest rates?

• To increase savings

• To avoid inflation

• To protect money market funds

• To strengthen the dollar

What economic condition could push central banks to consider negative rates?

• Decreasing unemployment

• Rising stock markets

• A second wave of the pandemic

• A strong economic recovery

Which regions initially adopted negative rates to weaken their currency?

• China and India

• United States and Canada

• Japan and Europe

• Australia and New Zealand