HSBC Is `Slightly Constructive' on Asian Currencies: Bloom

The video discusses the challenges of investing in emerging market (EM) currencies, emphasizing the impact of global factors like the US-China trade deal and Federal Reserve policies. It highlights the difficulty of local strategies when global dynamics are at play. The discussion includes the effects of trade wars and currency clauses, drawing parallels to the Plaza Accord. The video concludes with insights on currency manipulation and market volatility, noting changes in how currencies behave due to US policies.

What is a major challenge when trying to profit from EM currency?

• Local strategies are more important than global influences.

• EM currencies are not affected by global trade deals.

• Global factors like trade deals can override local strategies.

• Local economic ideas are always successful.

How do macroeconomic themes affect local economic strategies?

• They enhance the effectiveness of local strategies.

• They only affect local strategies in the short term.

• They can completely negate local economic ideas.

• They have no impact on local strategies.

What role does the Federal Reserve play in local economic strategies?

• It supports local strategies without interference.

• It only affects international trade deals.

• It can significantly impact local economic ideas.

• It has no influence on local strategies.

What was a key feature of the trade deals mentioned in the video?

• They encouraged countries to devalue their currencies.

• They focused solely on tariff reductions.

• They included clauses to prevent deliberate currency devaluation.

• They allowed for free currency manipulation.

How has the introduction of currency clauses in trade deals affected currency volatility?

• It has had no effect on currency volatility.

• It has made currency volatility unpredictable.

• It has increased currency volatility.

• It has decreased currency volatility.