Currency Check: More Downside for Euro in 2017?

The video discusses the strong dollar momentum and its impact on year-end trading, highlighting the reluctance of traders to add long dollar positions. It explores the influence of political events, such as elections in Europe, on currency markets, particularly the euro. The discussion also covers the yen-dollar trade, driven by divergences in bond yields and global equity markets. Finally, it addresses China's challenges with capital flows and currency management, emphasizing the impact of a strong dollar on the yuan and the potential continuation of capital controls.

What factors are influencing traders' reluctance to add to long dollar positions heading into year end?

How might the anticipated wave of fiscal spending in the US impact the currency markets in 2017?

What are the potential implications of political risks in Europe on the euro?

In what ways could the PBOC's actions regarding capital flows affect the yuan and the US dollar relationship?

What challenges does the PBOC face in managing capital outflows and maintaining currency stability?