U.S. Dollar Flexes Muscles Without Bump from QE

The video discusses the recent 4% appreciation of the DXY index over three months, highlighting its historical tendency to rise after QE programs end. The rationale is that fewer bond buyers lower prices, increasing yields and attracting investors. However, the current dollar strengthening is occurring before QE officially ends, partly due to ECB stimulus weakening the euro. Historically, the dollar has been seen as a safe haven during crises, such as the European debt crisis and the US debt ceiling debate. These factors contribute to the current firm movement of the dollar.

What has been the recent trend of the DXY index over the past three months?

• It has remained stable.

• It has appreciated by more than 4%.

• It has fluctuated without a clear trend.

• It has depreciated by more than 4%.

What is one reason for the dollar's strengthening before the official end of QE?

• A decrease in US interest rates.

• The ECB's stimulus weakening the euro.

• A rise in global oil prices.

• Increased bond buying by the ECB.

How is the DXY index weighted?

• Heavily towards the yen.

• Heavily towards the euro.

• Heavily towards the dollar.

• Equally among all global currencies.

What event at the end of QE1 contributed to the dollar being seen as a safe haven?

• The Asian financial crisis.

• The European debt crisis.

• The US housing market crash.

• The Brexit referendum.

What was a significant event during the end of QE2 that affected the dollar?

• The US debt ceiling debate.

• The US presidential election.

• The Greek financial bailout.

• The launch of Bitcoin.