UBP Says Likely to See Upside Risks in Dollar-Yen

The video discusses the economic factors affecting the yen and yuan, including the US yield curve, BOJ's policy, and China's economic conditions. It highlights the challenges faced by the yen due to Japan's trade balance and the BOJ's strategy. The yuan's weakness is attributed to China's slowing economy, POBC's rate cuts, and negative FDI flows. The video also covers the emerging markets' rate cutting cycle and its impact on local currency bonds, emphasizing the mixed outlook for EM assets amid the US yield curve steepening.

What is one of the main factors putting pressure on the Japanese yen according to the video?

• Improving Japanese trade balance

• Decreasing US interest rates

• Rising oil prices

• BOJ's aggressive tightening

How has the PBOC's recent policy affected the Chinese yuan?

• Led to a weaker currency

• Increased foreign investment

• Strengthened the yuan significantly

• Stabilized the yuan

What significant change in FDI flows towards China is mentioned in the video?

• Stable FDI flows

• Negative FDI profile

• No change in FDI flows

• Increase in FDI flows

Which countries have begun a rate-cutting cycle as mentioned in the video?

• China and Japan

• Brazil and Poland

• USA and UK

• India and Russia

What is the expected impact of the US yield curve steepening on EM assets?

• Boost in EM asset values

• No impact on EM assets

• Speed bump for EM assets

• Immediate recovery of EM assets