Credit Agricole's Cheung on FX Strategy

The transcript discusses trends in the currency market, focusing on the Chinese yuan (CNY) and its performance against the dollar. It highlights the intervention risks associated with the yen and CNY, emphasizing the role of volatility. The discussion also covers funding strategies, suggesting the Taiwanese dollar (TWD) as a potential funding currency. Additionally, the transcript explores emerging market currencies, particularly the Thai baht and Indonesian rupiah (IDR), noting their economic prospects and challenges.

What has been the recent trend in the Chinese Yuan (CNY) despite a stronger dollar?

• The CNY has been appreciating.

• The CNY has been fixed higher.

• The CNY has been depreciating.

• The CNY has remained stable.

What is one reason for the underperformance of the CNY?

• Positive interest rate differentials

• Negative interest rate differentials

• Strong economic growth

• High inflation rates

What is the main concern for the Dollar-Yen market according to the discussion?

• Inflation

• Trade balance

• Volatility

• Interest rate levels

Which currency is considered a good funding currency due to its negative yield?

• Japanese Yen

• Indonesian Rupiah

• Chinese Yuan

• Taiwan Dollar

Which currency is mentioned as having a potential for strong performance due to tourism revenues?

• Taiwan Dollar

• Thai Baht

• Indonesian Rupiah

• Philippine Peso

What is a significant challenge for the Philippine Peso?

• Strong export growth

• High interest rates

• Food prices and trade balance

• Tourism decline

What is a positive factor for the Indonesian Rupiah?

• Strong economic fundamentals

• Rising U.S. Treasury yields

• Declining commodity prices

• High inflation rates