StanChart's Devesh Sees Dollar Depreciate 5%-8% in 2018

The video discusses the current state of the US dollar, highlighting its overvaluation and the broken correlation between US yields and FX markets. It explains that despite potential yield increases, the dollar may weaken due to market positioning and global growth recovery. The video also touches on the impact of fiscal stimulus and the widening US twin deficits, suggesting a focus on fundamentals and a weaker dollar environment for the year.

What is the broader framework mentioned that is expected to drive the dollar weaker?

In the context of the dollar's valuation, what role do twin deficits play?