There Is Scope for Dollar to Correct a bit More, Says MUFG's Halpenny

The transcript discusses various factors influencing the US dollar's performance, including interest rate differentials, market sentiment, and positioning. It highlights the dollar's performance since President Trump's election, noting the impact of rate hikes and trade policies. The discussion also covers the correlation between interest rates and FX movements, investor caution, and the flattening yield curve, which affects returns despite nominal rate spreads.

What is the current sentiment towards the US dollar according to the first section?

• Bearish with a focus on short positions

• Neutral with no significant positioning

• Bullish with a buildup of long positions

• Confused with mixed signals

Since the 2016 election, how has the US dollar performed despite economic measures?

• It has significantly increased in value

• It has remained stable with no change

• It has fluctuated wildly without a clear trend

• It has decreased slightly by 1-2%

What economic factor is mentioned as a draw for the US dollar in the second section?

• Increasing trade deficits

• Stable inflation

• Decreasing interest rates

• Rising Fed funds rate

What is one reason for investor caution in the US market as discussed in the third section?

• Hedging costs and a flattening yield curve

• High inflation rates

• Lack of government support

• Uncertainty in global markets

How has the correlation between interest rates and FX movements been described in the third section?

• Non-existent

• Unpredictable and volatile

• Weak and inconsistent

• Strong and robust currently