Sterling Continues to Bounce Around With Brexit Talks

The video discusses the recent movements in sterling, attributing them to market liquidity issues and algorithmic trading. It highlights the uncertainty surrounding Brexit and the potential for a Scottish independence referendum, noting the challenges in pricing these risks. The discussion shifts to the Federal Reserve's upcoming rate hike decision, speculating on whether it will be hawkish or dovish, given recent commodity price trends and inflation data.

What is a significant factor contributing to the recent volatility in the sterling market?

• Predictable economic policies

• High liquidity

• Algorithmic trading

• Stable market conditions

Why is it challenging to price in the risk of a Scottish independence referendum?

• The referendum is likely to occur after Brexit

• Scotland has a strong independent economy

• The UK has already left the European Union

• The referendum is happening next month

What economic factor makes the Scottish independence debate more complex now?

• Strong Scottish economy

• Stable UK economy

• High oil prices

• Low oil prices

What is the historical tendency of the Federal Reserve when making interest rate decisions?

• Maintaining a neutral stance

• Erring on the dovish side

• Erring on the hawkish side

• Following European Central Bank policies

What recent economic data might influence the Federal Reserve's decision on interest rates?

• Rising commodity prices

• Falling commodity prices

• Increasing inflation

• Stable employment rates