‘Brexit’: What it Means For Currencies

The video discusses the impact of market positioning and volatility on sterling and Euro, influenced by opinion polls and potential Brexit outcomes. It explores currency projections, the effect of US interest rates, and analyst estimates. The discussion also covers the implications of currency weakness on inflation, highlighting the challenges of hedging in a volatile market.

What is a key factor that the market is watching to determine the movement of sterling?

• Government policies

• Commodity prices

• Opinion polls

• Interest rates

If the opinion polls suggest a Brexit, what is the predicted value of the euro against the pound?

• 0.7

• 80

• 85

• 90

What is the expected impact on the US if there is a Brexit?

• Uncertainty in the market

• Potential interest rate hikes

• Increased trade with the EU

• Strengthening of the dollar

What is a potential consequence of a weaker pound leading up to the Brexit vote?

• Imported inflation

• Demand-led inflation

• Export-led growth

• Increased savings

What is a challenge for corporates trying to hedge in the current market?

• High volatility

• Stable currency values

• Low interest rates

• Government regulations