How Brexit Is Affecting British Pound, Currency Markets

The transcript discusses the recent market volatility, particularly focusing on the sterling against the dollar and the euro dollar. It highlights the implications of the UK's current account deficit and the potential actions of the Bank of England. The conversation also covers the resilience of the euro in risk-off environments and the impact of financial conditions on the Bank of England's policy decisions.

What was the unexpected pricing for overnight volatility in the sterling against the dollar?

• 120

• 150

• 350

• 200

What is the predicted year-end rate for the sterling according to Deutsche Bank?

• 1.15

• 1.37

• 1.05

• 1.25

Why has the euro shown resilience in risk-off environments?

• Due to high inflation rates

• Strong economic growth

• Increased exports

• Repatriation of capital to liquid markets

What is the impact of lower gilt yields on the Bank of England's financial conditions?

• It tightens financial conditions

• It has no impact

• It eases financial conditions

• It causes inflation

What is a potential source of contagion in the banking sector?

• Low consumer spending

• High interest rates

• Government regulations

• Bank equity related capital structures