Wise to Be Cautious on Yuan, Westpac's Callow Says

The video discusses the Mexican peso's performance, highlighting a potential US-Mexico deal and its impact on the market. It also covers the cautious market sentiment towards China trade, emphasizing the need for a defensive posture. The analysis includes risk indicators, market positioning, and upcoming risk events like the Fed meeting and potential tariffs on Chinese imports. The video suggests caution in trading, especially with the yuan, and highlights the importance of monitoring September's risk events.

What has contributed to the positive sentiment around the Mexican peso this year?

• A decline in US interest rates

• Potential trade agreements between the US and Mexico

• A rise in oil prices

• A decrease in inflation rates in Mexico

Why is there a cautious sentiment regarding US-China trade discussions?

• China has refused to participate in talks

• The US has imposed new tariffs on China

• The discussions have been postponed indefinitely

• There is a lack of progress in negotiations

What is a recommended strategy in light of the current market sentiment towards the yuan?

• Invest heavily in the yuan

• Adopt a cautious approach

• Ignore the yuan's performance

• Sell all yuan holdings

What are some of the risk indicators mentioned in the market analysis?

• Increased investment in real estate

• High levels of gold buying

• Rising stock market indices

• Shorting of gold, Treasurys, and VIX

Which upcoming event is anticipated to have a significant impact on the market?

• The US presidential election

• The Fed meeting with a likely rate hike

• The opening of a major international trade fair

• The launch of a new tech product