How Does Brexit Uncertainty Impact the Pound, BOE Rates?

The transcript discusses the rising implied volatility on cable due to Brexit uncertainties and the potential impact of a November summit. It highlights the market's reaction to Brexit developments and economic data, noting that interest rate hikes are not expected until late next year. The discussion also covers the implications of Mark Carney's extended term and the potential for future economic volatility as unresolved issues resurface during the transition period.

What is one reason for the rising implied volatility on the British pound?

• Decreasing interest rates

• Stable economic data

• The extension of the Brexit deadline

• A successful Brexit deal

How does the market currently view the likelihood of aggressive interest rate hikes?

• Already priced in by the market

• Certain to happen in the next quarter

• Unlikely until the end of next year

• Highly likely within the next 6 months

What is a potential outcome if Brexit negotiations go well?

• The UK will remain in the EU

• Interest rates may increase sooner than expected

• Interest rates may decrease

• The transition period will be extended indefinitely

What role does Mark Carney play in the context of Brexit?

• He is leading the Brexit negotiations

• He is the EU's chief negotiator

• He is managing the monetary policy during the transition

• He is the Prime Minister of the UK

What challenge is anticipated towards the end of the transition period?

• A smooth resolution of all issues

• Increased volatility and unresolved issues

• A decrease in interest rates

• An extension of Mark Carney's term