Arkera's Patel Sees Pound Relief Rally to $1.35-$1.36

The video discusses the impact of Brexit on the UK market, highlighting a relief rally and the potential for a fair value of 135. It examines the UK's economic indicators, such as PMI and jobs figures, and the Bank of England's interest rates. The discussion also covers the implications of a Brexit extension on trade deals, particularly with China, and the constraints of EU rules. Finally, it analyzes the pound's valuation, suggesting markets may be underpricing it due to Brexit uncertainty and risk premiums.

What is the expected fair value of the British pound in the long run according to the discussion?

• 1.30

• 1.35

• 1.40

• 1.45

What economic indicator is mentioned as a sign of a healthy UK economy?

• Inflation rate

• PMI

• Unemployment rate

• GDP growth

What is the impact of global economic conditions on UK interest rate hikes?

• They stabilize interest rates.

• They reduce the number of hikes.

• They increase the number of hikes.

• They have no impact.

How does a long Brexit extension affect the UK's ability to negotiate trade deals?

• It allows immediate negotiation of new deals.

• It restricts negotiations due to EU rules.

• It has no impact on trade negotiations.

• It accelerates trade deal processes.

What is the main reason for the market's underappreciation of the British pound's value?

• Brexit uncertainty

• Strong global economy

• High inflation rates

• Low interest rates