Trade War Kills FX Volatility

Trade War Kills FX Volatility

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the muted options volumes and market reactions amidst trade tensions, highlighting the strength of the dollar. Traders face challenges in predicting currency trends due to these tensions and the potential for a currency war. The focus has shifted to emerging market and commodity currencies, with the Australian dollar serving as a proxy for trade war impacts. Despite low volatility, forecasting remains difficult, with banks hesitant to make predictions.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has remained strong despite muted market reactions and trade tensions?

The Pound

The Dollar

The Yen

The Euro

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are traders finding it difficult to take positions in the current market?

Because of unclear long-term economic impacts

Because of stable market conditions

Due to high volatility

Due to predictable currency trends

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which currency was surprisingly strong against the dollar, despite its haven status?

The Euro

The Yen

The Australian Dollar

The Kiwi Dollar

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are traders focusing on more now, according to the discussion?

Precious metals

Developed market currencies

Emerging market currencies and commodity currencies

Cryptocurrencies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are some banks hesitant to make currency forecasts?

Because of clear market trends

Due to high confidence in predictions

Due to murky and unpredictable market conditions

Because of stable economic conditions