Volatility in Pound Will Be High for Next 3 to 6 Months, Says BofAML’s Sinha

The transcript discusses the potential volatility of the British pound due to Brexit uncertainties, including the possibility of a general election or a second referendum. It explores the implications of a hard Brexit on the pound's value against the US dollar and suggests market strategies like being long on volatility. The discussion also covers the Bank of England's shifting stance towards a more dovish response to Brexit risks and the potential impact of leadership changes, such as the appointment of a pro-Brexit economist.

What factors are contributing to the expected volatility in the pound over the next three to six months?

What scenarios have the Europeans indicated could lead to an extension of the October 31st deadline?

How does the current account deficit of the UK affect the value of sterling?

What potential impact could Gerard Lyons' appointment as governor have on sterling?

How has the Bank of England's stance on inflation and policy response changed in light of Brexit risks?