Yuan to Strengthen in Medium to Long-Term: DailyFX’s Yang

The video discusses the trends in currency markets, focusing on China's economic performance and the strengthening of the yuan amid COVID-19 disruptions. It highlights China's GDP growth, trade surplus, and PBOC policies, which contribute to the yuan's strength. However, potential risks such as PBOC intervention and US-China tensions are noted. The video also examines the performance of Southeast Asian currencies, which have gained against the US dollar due to capital inflows and post-COVID recovery prospects.

What factors have contributed to the strengthening of the Chinese yuan this year?

• Increased U.S. tariffs on Chinese goods

• A strong U.S. dollar and China's economic decline

• A weakening U.S. dollar and China's economic recovery

• A decrease in China's GDP growth

What is a potential short-term risk to the yuan's appreciation?

• Strengthening of the U.S. dollar

• A decrease in China's trade surplus

• PBOC intervention to prevent one-way appreciation

• Increased U.S. investment in China

How might U.S.-China relations impact the yuan under the Biden administration?

• They could lead to a strengthening of the yuan

• They could have no impact on the yuan

• They could reignite tensions, posing a risk to the yuan

• They could result in increased trade between the two countries

Which Southeast Asian currency has shown strong gains against the U.S. dollar?

• Japanese yen

• Thai baht

• Indian rupee

• South Korean won

What factor is expected to help Southeast Asian economies recover post-COVID?

• Increased tourism due to vaccine rollouts

• A rise in local manufacturing

• A decrease in global trade

• A decline in foreign investments