Credit Suisse's Heng Sees Pound Diverging From Euro

The video discusses the outlook for the Mexican peso, highlighting the impact of trade tensions and interest rate hikes. It then shifts to Brexit's effect on the pound and euro, noting potential currency divergence. The Aussie dollar's relationship with commodity prices is analyzed, considering US interest rates. Finally, the focus is on US Fed rate hikes and their implications for the dollar.

What is the main reason for the current support of the Mexican peso?

• Reduction in inflation rates

• Doubling of benchmark interest rates by the Mexican Central Bank

• Decrease in US trade tensions

• Increased tourism to Mexico

What is the current market sentiment towards the British pound in light of Brexit?

• The pound is expected to strengthen significantly

• The pound is likely pricing in the worst-case scenario

• The pound is unaffected by Brexit developments

• The pound is expected to weaken further

What is the expected trend for the euro according to the analysis?

• The euro will remain stable

• The euro will strengthen against the dollar

• The euro will experience high volatility

• The euro will trade down towards parity with the dollar

How is the Australian dollar expected to perform in relation to commodity prices?

• It will remain unaffected by commodity prices

• It will benefit from higher bulk commodity prices

• It will only rise if US interest rates decrease

• It will decline as commodity prices fall

What is the recommended strategy for trading the Australian dollar?

• Sell immediately due to high US interest rates

• Buy at the peak of the trading range

• Hold off trading until next year

• Buy on dips around 72 or 73 US cents

What is the expected action of the Federal Reserve regarding interest rates?

• A reduction in interest rates

• A 25 basis point hike

• No change in interest rates

• A 50 basis point hike

What could cause the US dollar to remain strong according to the analysis?

• A decrease in inflation

• Hints of a quicker pace of Fed rate hikes

• A reduction in US interest rates

• Increased foreign investment