MacKlow-Smith Says Pound is Undervalued Long-Term

The video discusses the undervaluation of the pound and its potential to rally if positive news emerges from trade talks. It highlights the impact of the dollar's decline and Sterling's rise on earnings, particularly for exporters. The FX markets remain politically influenced, with the euro's recent highs surprising amid Italian election uncertainties and ECB policy changes. The video also explores Brexit's impact on financial centers, noting Frankfurt and Amsterdam as potential winners. Finally, it addresses the uncertainty surrounding future relationships and market expectations, emphasizing the need for detailed information by October.

What factor is mentioned as a potential reason for the pound to rally?

• Interest rate hikes

• Inflation rates

• Purchasing power parity

• Government spending

How did the dollar's performance last year affect Q1 earnings for exporters?

• It created a slight headwind

• It led to increased profits

• It had no impact

• It provided a boost to earnings

What recent event has contributed to the euro making new highs?

• US trade policies

• Italian elections

• Brexit negotiations

• ECB's stimulus measures

Which city is mentioned as potentially leading in financial wins post-Brexit?

• Madrid

• Paris

• Luxembourg

• Frankfurt

What is expected by October regarding the future relationship deal?

• A detailed agreement

• A complete trade deal

• An outline deal with limited details

• No progress at all