NAB'S Attrill on FX Strategies

The video discusses the potential for a 50 basis point rate hike by the Fed, with market expectations largely set on this figure. It explores the dollar's valuation against the yen, suggesting it may be undervalued. The possibility of intervention in the yen market is considered, though unlikely unless significant movements occur. Correlation trades between treasuries and currencies like the yen and CNH are highlighted, with market sentiment playing a crucial role in currency movements.

Discuss the relationship between the Chinese yuan and the Japanese yen in the context of currency competitiveness.

What are the potential consequences of a significant deviation from the Fed's expected monetary policy?

How might intervention in the currency markets be perceived, and what conditions could provoke such actions?