Pound at $1.35 a Reasonable Target If Brexit Deal Is Locked Down: BNP

The video discusses the impact of interest rate differentials on the dollar, noting that a drop below 200 basis points could negatively affect the dollar. It highlights the challenges models face in incorporating new factors like trade relations and Brexit. The discussion shifts to Brexit's influence on the pound, with predictions of its value reaching 1.35 if uncertainties are resolved.

What is the expected impact on the dollar if the basis points fall below 200?

• Uncertain impact

• No impact

• Negative impact

• Positive impact

What is a challenge for models in predicting market behavior?

• Incorporating historical data

• Adapting to new economic factors

• Calculating interest rates

• Predicting oil prices

What has been a significant factor affecting the Euro USD exchange rate recently?

• Oil prices

• Interest rate hikes

• US-China trade relations

• Brexit

What is the potential near-term target for the British pound according to the discussion?

• 1.35

• 1.40

• 1.30

• 1.25

What could help stabilize the British pound's exchange rate?

• A no-deal Brexit

• Increased trade tariffs

• Rising inflation rates

• Political decisions favoring the Prime Minister