How the U.S. Election Is Impacting Currencies

The video discusses the impact of the Trump-Clinton election on the dollar-peso exchange rate, highlighting how political events influence currency values. It examines the role of safe haven currencies like the Swiss franc and yen, and explains why foreign currencies are more sensitive to political changes than equities or fixed income. The discussion also touches on government involvement in markets and the implications for liquidity and investor expectations.

What was a major concern regarding the peso during the U.S. election?

• The peso's influence on European markets

• The peso's value against the euro

• Potential unilateral actions on NAFTA by Trump

• The peso's impact on the Chinese economy

Which currency showed significant movement against the dollar due to international concerns?

• The Australian dollar

• The Swiss franc

• The Canadian dollar

• The Indian rupee

Why are foreign currencies more sensitive to political changes compared to fixed income or equity?

• They are less liquid

• They are the largest global market

• They are controlled by fewer investors

• They are not influenced by government policies

What is a potential signal of the 'emerging marketization' of developed economies?

• Increased government intervention in equity markets

• Stable political environments

• Currency movements reflecting political instability

• Decreased liquidity in foreign exchange markets

How have governments traditionally been involved in markets?

• By setting fixed income market prices

• Through foreign exchange market interventions

• By controlling interest rates

• Through equity market interventions