StanChart's Devesh Sees Dollar Depreciate 5%-8% in 2018

The video discusses the current state of the US dollar, highlighting its overvaluation and the broken correlation between US yields and FX markets. It explains that despite potential yield increases, the dollar may weaken due to market positioning and global growth recovery. The video also touches on the impact of fiscal stimulus and the widening US twin deficits, suggesting a focus on fundamentals and a weaker dollar environment for the year.

What is one reason the dollar might not be supported despite potential increases in US yields?

• The dollar is overvalued.

• US yields are decreasing.

• Traditional correlations have strengthened.

• The dollar is undervalued.

What is a key factor contributing to the dollar's overvaluation?

• Lack of market interest

• Strong market positioning

• Decreasing global growth

• Weak central bank policies

Which markets are still long on dollars according to the transcript?

• Only real money funds

• Broader market including central banks and corporates

• Only central banks

• Only hedge funds

What global economic trend is influencing currency valuation?

• Stagnation in Japan's economy

• US-exclusive growth story

• Decline in European growth

• Synchronized global growth recovery

How does the fiscal stimulus in the US affect the dollar?

• It contributes to a weaker dollar environment.

• It strengthens the dollar.

• It stabilizes the dollar.

• It has no impact on the dollar.