Dollar Should Be on Firm Footing, Westpac's Callow Says

The video discusses the recent trends in the dollar index, the impact of tapering, and the potential risks associated with the Omicron variant on global markets. It highlights the influence of monetary policies from central banks like the ECB, BOJ, and the Fed on currency values, particularly the dollar, yen, and Aussie dollar. The video also explores the implications of these policies on carry trades and the potential opportunities and risks they present.

What is a potential risk when selling the US dollar according to the video?

• Buying the euro before the ECB meeting

• Holding onto the dollar for too long

• Investing in the stock market

• Ignoring inflation projections

How does the Omicron variant affect the yen's strength?

• It weakens the yen due to increased risk

• It has no impact on the yen

• It causes the yen to fluctuate unpredictably

• It strengthens the yen due to risk aversion

What is the relationship between the yen and US 10-year bond yields?

• The yen strengthens as bond yields decrease

• There is no correlation between the yen and bond yields

• The yen weakens as bond yields increase

• The yen strengthens as bond yields increase

What is the current stance of the Bank of Japan regarding monetary policy?

• Aggressively raising interest rates

• Maintaining a zero percent target on the 10-year yield

• Implementing quantitative easing

• Reducing inflation targets

What is a potential opportunity for carry trades according to the video?

• Exploiting low yields in Japan and Switzerland

• Focusing on the US dollar exclusively

• Investing in high-yield currencies

• Avoiding all carry trades due to volatility