Pound, Euro Going to Remain Underperformers, Says CIBC’s Bennett

The video discusses the impact of market headlines on traders, focusing on the uncertainty and volatility affecting currencies like Sterling. It examines the potential effects of a second referendum on Sterling, noting that markets react to any steps forward. The discussion highlights the elevated volatility since 2016 and the challenges in predicting long-term trends. The Sterling-Euro pairing is analyzed, considering factors like the ECB and Brexit, with both currencies seen as underperformers. Strategies for managing volatility are suggested, emphasizing the importance of understanding market dynamics.

What is a major factor that markets dislike, leading to currency pressure?

• Growth

• Certainty

• Stability

• Uncertainty

How did the market react to the possibility of a second referendum according to the discussion?

• It caused a temporary rally in Sterling.

• It was seen as a positive long-term solution.

• It led to a decrease in market volatility.

• It was ignored by traders.

What has been the trend in Sterling-Dollar volatility since 2016?

• It has been unpredictable.

• It has decreased significantly.

• It has remained stable.

• It has spiked to high levels.

What is the current market view on the Euro according to the analysis?

• It is expected to outperform Sterling.

• It is seen as stable and reliable.

• It is expected to gain strength.

• It is considered an underperformer.

What strategy is suggested for dealing with Sterling and Euro volatility?

• Buying Sterling volatility and selling Euro rallies.

• Selling Sterling volatility and buying Euro rallies.

• Holding both currencies for long-term gains.

• Buying Euro volatility and selling Sterling rallies.