Dollar Has Further Downside to Go, StanChart's Zhang Says

The video discusses the overvaluation of the US dollar and its potential decline, especially against Asian currencies, due to easing global financial conditions and de-escalating US-China trade tensions. It highlights the impact of trade talks on the yuan and the potential for a rollback of tariffs. The discussion also covers China's FX policy transparency and the outlook for the Japanese yen, emphasizing the supportive real yield differentials between the US and Japan.

What factors are contributing to the potential downside of the US dollar, particularly against Asian currencies?

• Rising interest rates in the US

• Decreasing central bank balance sheets

• Easing global financial conditions

• Strengthening US-China trade tensions

How is the offshore Chinese yuan correlated with US treasury yields?

• Positively correlated

• Negatively correlated

• Not correlated

• Directly proportional

What is the expected impact on the USD/CNY exchange rate if the US-China trade talks reach a phase one deal?

• USD/CNY is expected to rise to 7.30

• USD/CNY is expected to remain stable

• USD/CNY is expected to fall to 6.90

• USD/CNY is expected to rise to 7.15

What is the main reason for the recent weakness of the Japanese yen against the US dollar?

• Increased safe haven demand

• Decreased risk environment

• Rising Japanese interest rates

• Strengthening US economic data

What is the strategic position in the FX portfolio regarding the Japanese yen?

• Long dollar-yen

• Neutral on dollar-yen

• Long euro-yen

• Short dollar-yen