Nomura's Rochester Sees EUR/USD at 0.90 by Year End

The video discusses the stability and price discovery in the treasury and FX markets, highlighting the impact of UK pension flows and the QE program. It contrasts US trade advantages with European challenges, particularly in energy imports. Insights from a Nomura report on the British pension market are shared, along with current trade opportunities. The video concludes with an analysis of US economic indicators and trends in dollar trade.

What does the price action in 10-year and 2-year treasuries indicate?

• Instability in the market

• Stability and price discovery

• A decline in market confidence

• An increase in inflation

What factor contributed to the pound's 10% rally?

• Government intervention

• Increased foreign investment

• Poor liquidity positioning

• Strong economic growth

What is the potential impact of the QE program ending on the UK rates market?

• Increased stability

• A cliff edge scenario

• Higher inflation

• Decreased interest rates

What is the fundamental shift affecting the euro's value?

• Increased exports to the US

• Terms of trade shift to LNG in dollars

• Higher interest rates in Europe

• Natural gas priced in euros

What is the suggested trade strategy regarding the dollar?

• Sell all dollar assets

• Buy more euros

• Invest in long-term bonds

• Fade the dollar weakness