Yuan May Strengthen Against Dollar, UBS's Issel Says

The video discusses the volatility in emerging market (EM) currencies compared to G7 peers, highlighting the highest volatility since 2011. It explores factors influencing the EM space, such as trade and US interest rates, and analyzes the impact of trade tariffs on earnings. The discussion also covers the relationship between stock movements and fundamentals, emphasizing the role of external factors. Finally, the video analyzes trends in the dollar and emerging market currencies, considering central bank actions and their effects on currency strength.

What are the two main factors influencing the emerging market space this year?

• Trade and US interest rates

• Inflation and unemployment

• Oil prices and gold reserves

• Political stability and technology

How have Asian central banks responded to the current economic conditions?

• By reducing trade barriers

• By increasing currency supply

• By being proactive with rate hikes

• By lowering interest rates

What is the estimated impact of 25% tariffs on cars for the Japanese index?

• No impact

• 5% earnings downside

• 2.5% earnings downside

• 1% earnings downside

What is the significance of negotiations in the context of trade tariffs?

• They have no impact on valuations

• They drive market valuations

• They are irrelevant to stock prices

• They only affect short-term earnings

What is the outlook on the US dollar according to the discussion?

• Volatile with unpredictable trends

• Stable with no significant changes

• Bullish in the long term

• Bearish in the long or middle term

Which currencies are expected to strengthen against the dollar component?

• European currencies

• South American currencies

• Asian currencies

• African currencies

What is the role of the ECB and Bank of Japan in the currency basket?

• They are increasing currency supply

• They are focusing on gold reserves

• They are exiting QE and taking first steps

• They are reducing interest rates