Lates News

UBS Wealth Management Chief Investment Office (CIO) stated that a public opinion survey shows significant concerns among economists and market participants regarding the independence of the Federal Reserve and the accuracy of US economic data. The recent dismissal of the head of the US Bureau of Labor Statistics and the unexpected resignation of a member of the Federal Reserve Board could exacerbate these worries. Market attention is now shifting back to the Fed's response to the weakening growth momentum, which may draw more scrutiny to US policy decision-making and lead to more volatile fluctuations in US Treasury yields. "Investors should consider reducing excessive exposure to the US dollar in their portfolios." UBS believes that the current high prices of the dollar and stocks present a good opportunity to take action. In the Asia-Pacific region, the Australian dollar, Chinese yuan, and Singapore dollar are good tools for diversifying excessive exposure to the US dollar. Investors looking to diversify excessive exposure to the US dollar may consider the lower volatility of the Chinese yuan. China's services, investment, and offshore asset outflows have eased, while foreign capital flows have stabilized. Given the weakening confidence in the US dollar among investors, Chinese policymakers seem pleased with the strengthening of the yuan, which could be aimed at further promoting the internationalization of the yuan.