Risks Still Tilt to Downside for Sterling, Says Saxo's Hardy

The video discusses the foreign exchange market's reaction to political events, particularly Brexit. John Hardy from Saxo Bank explains how algorithms initially reacted to the possibility of a second referendum, causing a temporary rise in the pound. The discussion covers the complexities of Brexit, including Theresa May's deal and the potential for a general election, which could lead to a Corbyn administration. The market's nervousness about these outcomes is highlighted, with risks still perceived to be on the downside for sterling.

What was the initial reaction of the FX market regarding the possibility of a second referendum?

What are the three gateways mentioned in relation to the Brexit process?

How did the market react to the news of Theresa May's deal and its implications?

What are the potential outcomes if MPs do not back Theresa May's deal?

What risks are associated with the current political situation regarding Brexit and sterling?