If You Can Stomach Pound Volatility Bet on Soft Brexit, Lombard Odier Says

The video discusses the recent performance of sterling, highlighting its rise against the dollar and the market's reaction to Brexit developments. It emphasizes the ongoing volatility due to Brexit uncertainties and the challenges in making informed trades on sterling. The discussion suggests that a soft Brexit is the likely outcome, which would limit sterling's appreciation due to economic damage. Overall, the video advises caution in short-term trading due to political uncertainties.

What has been the performance of sterling against the dollar on a year-to-date basis?

• It has decreased by 6%

• It has decreased by 4%

• It has remained stable

• It has increased by 4%

What is the market's current stance on the hard Brexit premium?

• It is stable

• It is being priced out

• It is being priced in

• It is increasing

What could cause continued volatility in the market according to the speaker?

• A strong economic performance

• A stable political environment

• Rejection of the Withdrawal agreement

• A new trade agreement

What is the central scenario for Brexit according to the speaker?

• A soft Brexit

• A second referendum

• A hard Brexit

• A no-deal Brexit

What is the expected impact of a soft Brexit on sterling's medium-term performance?

• Sterling will increase moderately

• Sterling will remain unchanged

• Sterling will increase significantly

• Sterling will decrease significantly