Yen, Gold Are Good Safe Havens if No Mini U.S.-China Deal, Says BofAML’s Sinha

The video discusses the ongoing US-China talks, highlighting that China is unlikely to make concessions, and any interim deal would require US flexibility. The potential outcomes include a mini trade deal or increased tariffs, impacting markets, especially in Asia. Currency movements, such as the dollar-yen and dollar-CNY, are analyzed, with safe havens like the yen and gold being favorable. The implications of tariffs on Asian currencies and the PBOC's potential actions are also explored.

What is the main reason China is not expected to make concessions in the upcoming talks?

• Pressure from other Asian countries

• China's strong economic position

• Recent US actions like visa bans

• China's focus on internal policies

What is the expected outcome if the US and China do not reach a mini-deal?

• China will make concessions

• Tariffs will decrease

• Tariffs will increase from 25% to 30%

• The US will impose new sanctions

Why is the dollar expected to perform well against Asian currencies?

• Due to strong US economic growth

• Because of the potential delay in tariff increases

• As a result of the PBOC's currency adjustments

• Due to increased US exports

Which currency is considered a safe haven in the event of no deal?

• Pound

• Yen

• Australian Dollar

• Euro

What might the PBOC do if tariffs go ahead on October 15th?

• Increase foreign investments

• Strengthen the yuan

• Allow the fixings to move above 7.1

• Decrease interest rates