Dollar Is Both Safe Haven and High Carry Currency: UBS

The video discusses treasury volatility and its impact on the FX market, highlighting the role of the dollar as both a safe haven and a high carry currency. It examines the current market dynamics, including the lack of back-and-forth movement in currency trading. The discussion shifts to the euro market, noting increased inflows into European equities and the challenges of taking currency risks. The video concludes with insights into the potential for growth in European assets, despite the current currency market conditions.

What factors contribute to the volatility in the FX market according to the text?

How does the dollar's role as a safe haven and high carry currency affect market sentiment?

What is the current outlook for risky assets outside of the US according to the discussion?

What is the significance of equity inflows into Europe in relation to the euro's performance?

Why might US investors consider hedging their investments in European equities?