U.S. Dollar Flexes Muscles Without Bump from QE

U.S. Dollar Flexes Muscles Without Bump from QE

Assessment

Interactive Video

Business

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what way does ECB stimulus affect the euro and the DXY index?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What external factors contributed to the dollar being seen as a safe haven?

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