How Tax Repatriation Can Impact the U.S. Dollar

The video discusses the impact of a one-off levy on accumulated earnings abroad on the FX market and the US dollar. It highlights the shift in market focus from repatriation and tax reform to Fed policy and fiscal stimulus. The convergence trade is emphasized as a major theme, with G10 currencies catching up with the US. The video also explores the marginal impact of repatriation on the corporate market and the FX market, noting that it provides a short-term tailwind but is not a long-term driver for the US dollar. The potential for a larger twin deficit due to tax reform is also discussed.

Discuss the relationship between repatriation and the FX market as mentioned in the text.

What does the text suggest about the long-term effects of repatriation on the US dollar?