Why ‘Brexit’ Is Causing Markets To Be On a Knife Edge

The transcript discusses the dynamics of the Sterling market, highlighting the impact of uncertainty and short positions. It explores market volatility, the influence of David Cameron's stance on the EU, and the potential for Sterling to rally on positive news. The discussion shifts to the Euro, examining factors like the ECB meeting and Brexit's impact. The transcript concludes with an analysis of market expectations, particularly regarding US rate hikes, and their influence on the Euro and global financial conditions.

What is the market's current bias towards Sterling?

• Strength

• Positive

• Weakness

• Neutral

What significant political event is mentioned as impacting the market?

• US rate hike

• German export figures

• David Cameron's EU stance

• Scottish referendum

What is the key focus of the market regarding the Euro?

• US rate hikes

• ECB meeting in March

• German PMI figures

• Brexit fears

What is the market's expectation for the ECB's policy action?

• No change

• Policy tightening

• Further easing

• Increase in interest rates

What is lacking in the market that affects the Euro's potential to fall?

• Higher US rate hike expectations

• Increased volatility

• Positive news from the UK

• Stronger Eurozone economy