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.

How is Japan's trade balance impacting the yen, as mentioned in the text?

What are the three main factors affecting the dollar yen exchange rate according to the text?

Discuss the significance of net foreign direct investment (FDI) flows towards China as mentioned in the text.

What does the text suggest about the People's Bank of China's (PBOC) approach to currency management?

What implications does the ongoing yield steepening at the long end of the US curve have for emerging markets (EM)?