Is Dollar a Safe-Haven Currency?

The transcript discusses the market's reaction to Brexit, focusing on the potential for a harder stance with Boris Johnson as a leader. It highlights the market's underpricing of risks, particularly regarding the pound's future. The discussion shifts to the US market, noting a sell-off influenced by manufacturing data and trade concerns. The role of the dollar as a safe haven is debated, with emphasis on technical reactions in currency markets. The importance of diversifying portfolios with currencies less exposed to risk is also mentioned.

What is the market's current expectation regarding Brexit and leadership?

• No change in Brexit stance

• Immediate resolution of Brexit issues

• A harder Brexit with Boris Johnson as a potential leader

• A softer Brexit with Theresa May continuing as leader

What is causing the market to be stuck between two probabilities?

• The possibility of a new trade deal

• The stability of the current government

• The uncertainty between a no-deal Brexit and no Brexit

• The expectation of a new election

What recent event contributed to the US equities sell-off?

• A new trade agreement

• A strong US manufacturing PMI

• A rise in interest rates

• A soft US manufacturing PMI

Why is the dollar not considered a safe haven in the recent market context?

• It is not widely traded

• It is too volatile

• It failed to rally despite market sell-off

• It has a high correlation with risk-on assets

Which currencies are suggested for diversification due to low correlation with S&P returns?

• Euro and Yen

• Australian Dollar and Swiss Franc

• US Dollar and Pound

• Yo Canada and Uroki V