British Pound Stops Dropping

The video discusses the impact of Brexit on the British pound, noting a significant drop in trade-weighted terms. It examines the shuttering of real estate funds and the potential for market overreaction. The discussion extends to possible currency fluctuations, with central banks like the Bank of England and ECB potentially intervening to stabilize markets. The video also explores the political and economic implications for the Eurozone, suggesting that markets may not fully account for the referendum's impact. Finally, it considers the ECB's strategies, including asset purchases, which could lead to further euro depreciation.

What was the percentage drop in the British pound in trade-weighted terms shortly after the Brexit referendum?

• 15%

• 10%

• 5%

• 20%

What is the potential lowest value for the pound against the dollar as forecasted by Deutsche Bank?

• 1.20

• 1.10

• 1.25

• 1.15

What is the main concern of central banks regarding currency volatility post-Brexit?

• Increasing interest rates

• Reducing inflation

• Minimizing short-term volatility

• Expanding trade agreements

What is the expected action of the ECB under Mario Draghi in response to the economic impact of Brexit?

• Reduce asset purchases

• Increase interest rates

• Strengthen the euro

• Expand the list of assets for purchase

What is the anticipated effect of the ECB's expanded asset purchases on the euro?

• Depreciation against the dollar

• Appreciation against the dollar

• No change against the dollar

• Stabilization against the dollar