U.S. Dollar Will Remain Strong for Coming Year, Says Barclays's Pepper

The video discusses the impact of global bond yields on major currencies, particularly focusing on the US dollar's strength and its effect on emerging markets. It highlights the pressure from rising US yields on emerging market currencies and high beta G10 currencies. The discussion also covers political risks in countries like India and Indonesia, and the ongoing US-China trade war. The need for greater investor compensation to reflect these risks is emphasized, with an expectation of further currency weakness in vulnerable markets.

What is the expected impact of higher US yields on emerging market currencies?

• Emerging market currencies will become more stable

• No impact on emerging market currencies

• Weakening of emerging market currencies

• Strengthening of emerging market currencies

Which factor is expected to impose pressure on high beta G10 currencies?

• Rising short-term US yields

• Decreasing US fiscal deficit

• Stable US current account

• Political stability in emerging markets

What political events are highlighted as risks in the second section?

• Elections in India and Indonesia

• US presidential election

• European Union trade agreements

• Brexit negotiations

What is the main message regarding investor compensation in the final section?

• More compensation is needed to reflect risks

• Compensation is irrelevant to market dynamics

• Investors are adequately compensated for risks

• Compensation should be reduced

What is the expected trend for vulnerable currencies in the near future?

• Stability throughout the year

• Weakening in the first quarter

• Immediate recovery and strengthening

• Strengthening in the first quarter