Agrees with Ziad. The UAE has strong net assets; the issue is short-term liquidity. A swap line could be mutually beneficial, limiting the need to sell US Treasuries and helping manage US yield pressures.

It's more about convenience than a dire need.

States FX initially reacted to oil prices but is now shifting to traditional drivers like central bank policy. Notes the ECB is more likely to react to inflation now than in 2022, which is positive for the Euro. There is a gradual, underlying loss of confidence in dollar outperformance.

The 2022 comparison is flawed because rates were at zero then, whereas now policy stances are more diversified globally.

Adds that their base case assumes a moderate scenario where elevated oil prices last one to two quarters.

This is a risk management approach, and the nature of this war is more geopolitical and could end quickly if there is political will.

Compares the BOE and ECB, suggesting the BOE is more likely to cut rates, or if hikes are needed, the ECB would move faster due to a tighter European labour market.

UK wage pressures are not as strong as in Europe.