Download Oliver Brennan's note "End of an era: The end of strong dollar policy"

AIT changes the dollar paradigm: the dollar smile is now more of a smirk with the right-tail much less bullish USD.

  • Average inflation targeting: important for asset prices, less so for the economy
  • Monetary policy regime now bifurcated: Fed is ultra-dovish until it’s not
  • We rotate our short TWD/KRW trade into short USD/KRW

TS Lombard Chart Oliver Brennan The Dollar Smile