Will China's Yuan Reach 6.0 Against Dollar in 2021?

The transcript discusses potential surprises in currency markets, focusing on the yuan, euro, and dollar. It examines China's economic recovery, bond yields, and the implications of a bond market collapse on equities. The discussion also reflects on 2020 predictions, highlighting unexpected outcomes like the pandemic and its impact on financial markets.

What is one potential surprise discussed regarding the yuan and the euro?

• The euro strengthens to 120 against the dollar.

• The yuan falls to 7 against the dollar.

• The yuan strengthens to 6 against the dollar.

• The euro weakens to 90 against the dollar.

Why might China's policymakers be more open to RMB appreciation?

• To reduce domestic inflation.

• To increase trade competitiveness.

• To attract foreign investment.

• To preserve purchasing power amid rising commodity prices.

What is expected to keep China's bond yields stable in the short term?

• China's strong economic recovery.

• High inflation rates.

• Increased foreign investment.

• Rising commodity prices.

What could be a consequence if the bond market collapses?

• Yields would decrease significantly.

• Equities would likely thrive.

• The housing market would boom.

• Risky assets, including equities, would struggle.

How are central banks expected to manage financial conditions?

• By reducing mortgage rates further.

• By tightening monetary policy.

• By keeping financial conditions extremely loose.

• By increasing interest rates significantly.

What was one prediction made for 2020 that came true?

• Global growth accelerated.

• US equities fell by 20%.

• The Fed cut interest rates dramatically.

• The pandemic was accurately predicted.

What is the expected trend for US Treasury yields according to the discussion?

• They will stay the same.

• They will move moderately higher.

• They will decrease significantly.

• They will remain volatile.