Jane Foley: Downside Open for Pound on 'Political Chasm'

The video discusses the decline of the British pound to its lowest level since 1985, driven by political chaos and economic uncertainty in the UK. It highlights the impact of political instability on business confidence, investment, and job creation. The discussion also covers currency market reactions, including the role of safe haven currencies like the yen and Swiss franc, and potential interventions by central banks. The overall outlook for the pound remains negative amid ongoing uncertainty.

What is one of the main reasons for the pound's vulnerability according to the first section?

• Strong economic growth

• Current account deficit

• High inflation rates

• Political stability

How does political uncertainty affect business confidence and investment?

• It increases both

• It decreases both

• It has no effect

• It only affects business confidence

What is a potential consequence of lower business confidence mentioned in the second section?

• Stable economic growth

• Lower job creation

• Higher investment

• Increased job creation

Which currencies are considered safe havens in times of market volatility?

• US Dollar and Euro

• Australian Dollar and Yuan

• Yen and Swiss Franc

• Pound and Canadian Dollar

What is a major concern for the Bank of Japan regarding currency intervention?

• High inflation rates

• Economic growth

• Approval from the US Treasury

• Political stability