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