Brexit: How to Play the Euro and Pound

The transcript discusses market strategies for protection, focusing on the euro's potential performance and its current account surplus. It highlights currency market positioning, particularly the yen's strength, and the risks associated with commodity exporter currencies. The discussion also covers the dollar's strength and the Federal Reserve's position, considering the impact of Brexit and potential US recession.

What is one reason the euro might perform better than expected during market disruptions?

• It is backed by a large current account surplus.

• The ECB is selling government securities.

• The eurozone is experiencing high inflation.

• It has a large current account deficit.

What is a potential risk for the yen in the current market?

• The Bank of Japan might strengthen the yen.

• The yen is overvalued compared to the euro.

• The yen is losing its status as a safe haven.

• The Bank of Japan might ease further.

Which currency is considered a safety play alongside the yen?

• The Canadian dollar

• The Polish Lottie

• The US dollar

• The Swiss franc

What might happen if the Fed loses confidence in its tightening cycle?

• The euro might collapse.

• The Canadian dollar might outperform.

• The US dollar might weaken.

• The yen might strengthen.

How might Brexit impact the euro and pound if the UK remains in the EU?

• The euro and pound might destabilize.

• The euro might weaken, but the pound might stabilize.

• Both the euro and pound might stabilize.

• The pound might weaken, but the euro might stabilize.