Dollar, for Once, Is a Very Positive Carry Currency, UBS's Serebriakov Says

The video discusses the unexpected strength of the dollar in 2019 despite dovish Fed policies and low inflation. It highlights the dollar's positive carry status due to low volatility and high yield. The future of the dollar depends on global growth, particularly in China and Europe, and changes in monetary expectations. The video also explores opportunities in European assets, noting the underperformance of German equities and the euro's undervaluation.

What factors have contributed to the unexpected strength of the dollar in 2019?

• High inflation and low interest rates

• Low volatility and high yield

• Weakness in other major currencies

• Strong growth in China and Europe

What could signal a potential weakening of the dollar in the second half of 2019?

• A rise in US inflation

• A decline in Chinese economic growth

• An increase in European yield curves

• A decrease in US interest rates

Why might European assets be considered attractive despite recent downgrades?

• The stability of European political systems

• The undervaluation of the euro

• The ECB's aggressive interest rate hikes

• The strong performance of German equities

Which European market is highlighted as underperforming and potentially offering a catch-up opportunity?

• French equities

• Italian bonds

• German equities

• Spanish real estate

What is the long-term fair value range for the euro mentioned in the video?

• 1.20 to 1.25

• 1.10 to 1.15

• 1.25 to 1.30

• 1.30 to 1.35