Yen May Rise to 105 Per Dollar by Year End, StanChart's Zhang Says

The video discusses the USD/JPY exchange rate, focusing on the narrowing real yields between the US and Japan, which could lead to a stronger yen. It also covers the global economic outlook, including positive signs from China and potential trade deals. The USD is considered overvalued, but a broad sell-off is unlikely without economic growth stability. The Chinese Yuan is expected to strengthen if economic recovery continues and trade tensions ease.

What is the primary reason for the expected strengthening of the Japanese yen to 105 by the end of the year?

• Increased demand for Japanese exports

• Decreasing interest rates in the US

• Narrowing real yields between the US and Japan

• Rising inflation in Japan

How might global economic recovery signs, particularly from China, influence the USD/JPY exchange rate?

• They will have no impact

• They will support the narrowing real yield story

• They will cause the JPY to weaken

• They will lead to a stronger USD

What is a significant factor missing for a broad-based USD sell-off?

• Stability in global economic growth

• Increased US interest rates

• A parallel shift in other central banks

• A dovish shift by the FOMC

What could provide more stability for the Chinese yuan according to the discussion?

• Stabilization in Chinese economic data

• A decrease in global trade

• Increased tariffs on Chinese goods

• A stronger US dollar

What is the expected range for USD/CNY if a trade deal is reached and tariffs are removed?

• 6.50 to 6.60

• 6.60 to 6.70

• 6.70 to 6.80

• 6.80 to 6.90