Cochinos: BOJ, BOE Action Can Spark U.S. Dollar Rally

The transcript discusses expectations for the Federal Reserve and Bank of Japan, highlighting a strong domestic environment in the US and potential impacts on the dollar. It explores the implications of central bank policies on currency markets, particularly the dollar rally. The analysis includes a focus on the Sterling-Swiss Franc pair amid Brexit and Swiss National Bank policies. Challenges in achieving euro parity are examined, emphasizing the need for investor confidence and changes in ECB policy. The discussion concludes with insights into risk appetite and emerging market investments, stressing the importance of global trade stabilization.

What is the primary reason the Fed might avoid sounding too hawkish?

• Weak housing market

• High inflation rates

• International concerns

• Strong domestic employment

Which currency pair is highlighted as particularly interesting due to Brexit and Swiss policies?

• Euro-Dollar

• Sterling-Swiss Franc

• Dollar-Yen

• Euro-Yen

What has the SNB been effective in limiting according to the discussion?

• Dollar depreciation

• Swiss Franc rally

• Swiss Franc depreciation

• Euro appreciation

What is necessary for investors to start taking on riskier positions?

• Higher interest rates

• Policy expansion and global trade stabilization

• Increased government spending

• Lower inflation

What is the current basis for the risk rally in emerging markets?

• Political stability

• Technological advancements

• Liquidity

• Fundamental growth