BNY Mellon’s Derrick Expects Volatility to Increase in Currencies

BNY Mellon’s Derrick Expects Volatility to Increase in Currencies

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the potential increase in currency volatility due to thinner market liquidity and trade tensions between the US and China. It highlights the historical context of market volatility during summer months and China's currency policy moves. The discussion also covers the dollar-CNH volatility, policy expectations before the G20 meeting, and China's desire for greater currency flexibility. Trading strategies are suggested, focusing on proxy currencies like the Australian dollar and South Korean won, considering the speculative positions and potential rate cuts.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason for the expected increase in currency volatility during the summer months?

Increased market liquidity

Historical moves by China on currency policy

Decrease in market volatility

Stable trade relations between the US and China

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected impact of the G20 meeting on the Chinese yuan?

No significant changes before the meeting

Devaluation of the yuan

Increase in yuan's global dominance

Immediate strengthening of the yuan

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might happen if the G20 meeting does not go well?

Decrease in trade tensions

Ratcheting up of tensions

Immediate resolution of trade issues

Strengthening of the yuan

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which currency is suggested as a proxy for trading in light of potential currency volatility?

Euro

Japanese yen

British pound

Australian dollar

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the South Korean won be considered in trading strategies?

Its independence from Chinese policy

Its strong correlation with the euro

Because of an expected rate cut

Due to its stability