Nomura's Rochester Says Delay to Article 50 Is a Positive for Sterling

The video discusses the implications of a two-month risk reversal for the pound, highlighting the bearish sentiment and potential downside risks. It explores the impact of elections and Article 50 delays on the pound's value. The discussion then shifts to the binary outcomes for the pound, considering deal, no deal, and other scenarios. Theresa May's Brexit strategy is analyzed, focusing on her willingness to risk a no-deal Brexit. The role of the Attorney General in Brexit negotiations is also covered, particularly regarding changes to the backstop.

What is one of the main reasons for holding protection against the pound's downside risk?

• A potential increase in interest rates

• The possibility of a No Deal Brexit

• A surge in foreign investments

• A stable political environment

Which of the following is NOT one of the three simplified Brexit scenarios mentioned?

• No Deal

• Hard Brexit

• Deal

• No Brexit

What political event is considered still quite possible this year according to the transcript?

• A second referendum

• An election

• A new trade deal with the EU

• Theresa May's resignation

What is the Attorney General expected to discuss in his speech?

• The future of the European Union

• The economic impact of Brexit

• New trade agreements

• Changes to the backstop

What could potentially bring the bulk of the party back on board according to the transcript?

• A low bar set for backstop changes

• A new election

• Theresa May's resignation

• A second referendum