Not Going to Be a Lot of Weakness in Yuan Over Next Few Weeks, Says SocGen’s Daw

The transcript discusses the current market trends, focusing on the yuan and the PBOC's efforts to manage its value. It highlights the potential impact of the G20 meeting on trade discussions between the US and China, emphasizing the market's anticipation of possible outcomes. The speaker suggests a short-term strategy of being short on dollars against the yuan, considering the current market conditions and potential policy signals.

What is the primary reason the PBOC is trying to desensitize the market to the seven level?

• To encourage more foreign investment

• To increase the value of the yuan

• To maintain currency stability and prevent speculation

• To prepare for a potential currency devaluation

What is the suggested short-term strategy for trading dollars against the yuan leading up to the G20 summit?

• Short dollars and anticipate a correction in Dollar China lower

• Invest in other Asian currencies

• Avoid trading until after the G20 summit

• Long dollars against the yuan

Why might traders prefer to avoid dealing with volatility between the current range and seven?

• Because of a lack of market liquidity

• To avoid potential losses from speculative risks

• Because the yuan is expected to appreciate

• Due to high transaction costs

What is the market's expectation regarding the outcome of the G20 summit?

• A comprehensive trade agreement will be reached

• High-level discussions will resume, but no firm deal is expected

• The US will impose new sanctions on China

• Tariffs will be immediately removed

What could be a potential consequence if no agreement is reached at the G20 summit?

• The yuan will strengthen significantly

• Tariffs in the US are likely to be raised

• China will abandon the seven level defense

• The US will reduce tariffs