How Realistic Is Trump Advisors' Threat to Target H.K. Dollar Peg?

The video discusses the stability of the Hong Kong dollar amidst potential US actions. Despite concerns, the Hong Kong dollar remains strong, with minimal market impact. The Hong Kong Monetary Authority is well-equipped to defend the currency, having faced similar challenges in the past. Potential US actions could lead to significant economic consequences, including possible retaliation from China. The forward market is analyzed, showing how it can indicate trader sentiment and potential market movements.

What has been the market impact of the Hong Kong Monetary Authority's actions to prevent the Hong Kong dollar from getting too strong?

• Increased volatility

• Minimal impact

• Complete market collapse

• Significant market fluctuations

What is one of the strategies the Hong Kong Monetary Authority might use to defend the Hong Kong dollar?

• Lowering interest rates

• Raising short-term interest rates

• Decreasing foreign reserves

• Increasing currency supply

How might China respond if the US attempts to undermine the Hong Kong dollar?

• By supporting the US

• By retaliating economically

• By ignoring the situation

• By devaluing its own currency

What does a rise in forward points in the Hong Kong dollar market suggest?

• Improved economic outlook

• Decreased cost of funding

• Increased cost of funding

• Stable market conditions

During the 1998 financial crisis, how high did the forward points for the Hong Kong dollar reach?

• 3000

• 800

• 200

• 8000