Yen Is 'Significantly Cheap' on Trade-Weighted Basis, Barclays Says

The transcript discusses trade tensions and the role of the PBOC in currency fixing, highlighting mixed signals in the market. It explores the risks of currency depreciation, such as capital outflow, and suggests that monetary easing in China should focus on liquidity. The potential for a currency war is considered, with a focus on the yen's strong performance against other G10 currencies, attributed to its undervaluation and the global economic environment.

What are the risks associated with capital outflow mentioned in the text?

In what ways does the text suggest that monetary easing could be delivered in China?