Markets Are Waiting to See How Virus Progresses: BMO Capital’s Gallo

The video discusses the initial optimism in the market following the W Helfo decision, which quickly faded as investors adopted a wait-and-see approach regarding the virus's spread. The focus shifts to China's economic challenges, including trade issues, debt levels, and the Wuhan virus, raising concerns for investors. The discussion then covers expectations of more stimulus from the PBOC and the Chinese government's currency management strategies. Despite the coronavirus outbreak, FX market volatility remains subdued compared to other asset classes, as FX is seen as a sideshow in the broader economic context.

What is the expected impact of stimulus measures on the Dollar RMB exchange rate?

Why has FX volatility remained subdued compared to other asset classes since the outbreak of coronavirus?