HSBC's Bloom Says Euro-Sterling Is 'Flat as a Pancake'

The transcript discusses the anticipation of a central bank rate hike and its impact on the sterling, which has jumped by 1%. The pound-dollar forecast has been raised from 126 to 134. The UK economy's cyclicality and the influence of Brexit on currency are analyzed, with a focus on euro-sterling stability. Despite trading opportunities, significant risks are noted for sterling against both the euro and the dollar, with concerns about the UK's budget and current account deficits. The discussion concludes with a cautious stance on sterling due to political and economic uncertainties.

What was the central bank's warning regarding the rate hike?

• Four and more

• Three and free

• Two and through

• One and done

What is the revised pound-dollar forecast mentioned in the video?

• 1.20

• 1.40

• 1.26

• 1.34

Why is euro sterling considered more important than the dollar in this context?

• It has been stable for six months

• It is more volatile

• It is unaffected by Brexit

• It is stronger than the dollar

What are the significant risks for sterling mentioned in the video?

• High inflation and political stability

• Low inflation and political stability

• Low inflation and political issues

• High inflation and political issues

What is the speaker's ultimate stance on trading sterling?

• Buy for short-term gains

• Buy and hold

• Sell immediately

• Avoid trading