Englander: Dollar Disappointment if Fed Holds Rates

The video discusses the current market expectations for a Federal Reserve rate increase, noting that no significant increase is expected until the middle of next year. It analyzes the potential downside for the dollar if market predictions hold true, highlighting the shift from a divergent to a convergence trade. The Bank of Japan's recent decision to maintain its negative interest rates is examined, with skepticism about further rate cuts. Finally, the video predicts which currencies might rally against a weakening dollar, focusing on the euro and yen.

What are the current expectations regarding a Fed rate increase?

How is the dollar expected to perform according to the market predictions?

What was the market's reaction to the Bank of Japan's recent decisions?

What challenges does the Bank of Japan face in implementing effective stimulus?

Which currencies are expected to rally against the dollar as it continues to fall?