Pound to Fall to $1.20 on Brexit Risks, Mizuho's Chatwell Says

The video discusses the potential rate hike by the Bank of England and the economic uncertainty facing the UK. It explores the impact of these factors on UK asset classes, particularly the bond curve, and how Brexit uncertainty influences the market. The discussion also covers the relationship between interest rate differentials and the cable, highlighting the political uncertainty's effect on the FX market. Finally, it examines different Brexit scenarios and their potential impact on the market, suggesting a soft Brexit as the most likely outcome.

What is one of the main reasons the speaker is against a rate hike by the Bank of England?

• High consumer leverage

• Low inflation rates

• Strong economic growth

• Stable political environment

What is expected to influence the two-year gilt yield according to the discussion?

• Global economic trends

• Brexit negotiations

• Bank of England's policy

• US Federal Reserve decisions

How is the ten-year gilt yield expected to behave in the context of Brexit uncertainty?

• It will fall

• It will rise significantly

• It will be unaffected

• It will remain stable

What is the likely outcome if the UK government pushes for a hard Brexit?

• A second referendum

• Increased investor confidence

• Immediate economic recovery

• Strengthened EU relations

What does the speaker suggest is the most probable Brexit outcome?

• No-deal Brexit

• Hard Brexit

• Soft Brexit

• Complete EU integration