SocGen's Juckes Says Recent Calm in FX Markets Is Deceptive

The video discusses the deceptive calm in the FX market as post-crisis policies are dismantled. It highlights the rise in JP Morgan's global FX volatility index due to low US interest rates and market expectations. The discussion shifts to the implications of potential interest rate hikes on equity markets and risk. The video also explores the strong vs weak dollar debate, referencing Steve Mnuchin's comments and global currency policies, including Japan's and the ECB's strategies. The overarching theme is the shift from post-crisis policies to normalization and its impact on global currencies.

What has been a key driver of low volatility in the FX market?

• High US interest rates

• Market's conviction about Fed's rate hikes

• Uncertainty in equity markets

• Strong global economic growth

What is causing the recent spike in volatility according to the discussion?

• Uncertainty about future economic directions

• A stable bond market

• A sudden drop in US interest rates

• Increased global trade

What does Steve Mnuchin's comment about the dollar suggest?

• He wants a weaker dollar

• He is indifferent about the dollar's strength

• He desires a stronger dollar

• He wants to maintain the current dollar value

What is the global trend in monetary policy as discussed?

• Focusing on fiscal policies

• Moving towards normalizing monetary policy

• Maintaining post-crisis policies

• Increasing currency devaluation

How are other countries' currencies reacting to the normalization of monetary policy?

• They are unaffected

• They are strengthening

• They are stabilizing

• They are becoming weaker