Trade War Kills FX Volatility

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.

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

• The Pound

• The Dollar

• The Yen

• The Euro

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

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

• The Euro

• The Yen

• The Australian Dollar

• The Kiwi Dollar

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

• Precious metals

• Developed market currencies

• Emerging market currencies and commodity currencies

• Cryptocurrencies

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