BMO's Gallo Says Chances of Hard Brexit Have Lessened

The video discusses the impact of recent election results on Brexit, highlighting a reduced likelihood of a hard Brexit, which is seen as positive for the pound in the short term. However, political uncertainty remains high, affecting economic policy and EU negotiations. The market is expected to focus on Brexit implications rather than fiscal plans, with the narrative associating a softer Brexit with a stronger pound.

What was the immediate market reaction to the election results in terms of Brexit?

• Immediate implementation of Brexit

• Increased likelihood of a hard Brexit

• Reduced likelihood of a hard Brexit

• No change in Brexit likelihood

What is one of the main challenges in Brexit negotiations following the election?

• Lack of interest from the EU

• Overwhelming support for hard Brexit

• Immediate trade deals with the EU

• Absence of a hard Brexit card

What is a potential long-term limitation mentioned in the context of Brexit negotiations?

• Immediate economic growth

• Inability to negotiate new trade deals

• Strengthening of the pound

• Reduction in political uncertainty

What does the market associate with a softer Brexit?

• Immediate economic recession

• No impact on the pound

• Stronger pound

• Weaker pound

What is the market's narrative regarding hard Brexit and the pound?

• Hard Brexit strengthens the pound

• Hard Brexit weakens the pound

• Hard Brexit has no effect on the pound

• Hard Brexit leads to immediate economic growth