CLEAN : Pound pummelled, stocks slammed by Brexit vote

The video discusses the negative impact of uncertainty on the British pound and how investors tend to seek safe assets like the US dollar, Swiss franc, Japanese yen, and gold during such times. It highlights the short-term positive effect on the dollar and the potential implications of Brexit on global markets, including the Federal Reserve's interest rate decisions. The video also covers how central banks are preparing to provide liquidity to stabilize financial markets during periods of stress.

What is the primary reason for the negative outlook on the British pound during uncertain times?

• The UK has a strong GDP growth.

• Investors prefer stable currencies.

• The eurozone is experiencing a boom.

• The British economy has a surplus.

Which currencies are considered safe havens during periods of uncertainty?

• US dollar, Swiss franc, Japanese yen

• Euro, British pound, Canadian dollar

• Mexican peso, Brazilian real, South African rand

• Australian dollar, Indian rupee, Chinese yuan

How does the uncertainty surrounding Brexit potentially affect the Federal Reserve's interest rate decisions?

• The Federal Reserve will maintain current interest rates.

• The Federal Reserve may delay raising interest rates.

• The Federal Reserve will decrease interest rates.

• The Federal Reserve will increase interest rates.

What role do central banks play during periods of heightened market stress?

• They sell off foreign reserves.

• They restrict currency exchange.

• They increase interest rates to control inflation.

• They provide liquidity to stabilize markets.

What preparations are global central banks making in anticipation of Brexit?

• Preparing to provide liquidity to backstop financial markets.

• Planning to increase interest rates.

• Reducing their gold reserves.

• Increasing trade tariffs.