Citi's Rahbari Says Dollar Not Driven by Fed as Two More Cuts Expected

The video discusses the role of foreign exchange (FX) as a global economic indicator, highlighting why FX movements are not as pronounced as interest rates. It explores factors influencing FX, such as idiosyncratic developments in G10 countries and global economic extremes. The US is still seen as a safe investment destination, though skepticism is rising. The outlook for the dollar remains positive due to the US's relative economic strength and carry advantage, despite potential Fed rate cuts. The Fed's neutral communication and economic data suggest further easing, but this is not the main driver for the dollar's trajectory.

What are the two types of situations in which FX tends to move?

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How does the current state of the US economy affect the dollar's outlook?

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What factors contribute to the dollar's carry advantage in the current economic climate?

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In what way has the communication from the Fed been described recently?

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What does the speaker suggest about the Fed's future actions regarding interest rates?

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