Investors May Be Too Benign About Volatility: UBS

The video discusses major global risks, focusing on the Ukraine situation and the potential volatility in exchange rates due to diverging monetary policies between the US, Europe, and Japan. It highlights the expected movements in exchange rates, particularly between the dollar and euro, and the implications for emerging and established economies. The discussion also covers the actions of central banks, including the Bank of England and the Swiss National Bank, in response to these economic conditions.

What is one of the major risks mentioned that could affect market volatility?

• US-China trade war

• Ukraine risk

• Brexit

• Climate change

Which currency pair is highlighted as having significant changes in recent weeks?

• Dollar-Yen

• Pound-Yen

• Euro-Dollar

• Euro-Pound

What is the expected trend for the euro relative to the dollar?

• Fluctuating euro-dollar exchange rate

• Stable euro-dollar exchange rate

• Weaker euro, stronger dollar

• Stronger euro, weaker dollar

Which central bank is likely to move early on rates, possibly even before the Fed?

• Bank of England

• Bank of Japan

• Swiss National Bank

• European Central Bank

What action has the Swiss National Bank taken in response to the euro's weakness?

• Increased interest rates

• Floated the Swiss franc

• Pegged the Swiss franc to the euro

• Decreased interest rates