Is the British Pound Undervalued?

Is the British Pound Undervalued?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the stability of the spread between Libor and commercial paper rates, highlighting a significant demand for T-bills. It also examines the impact of money market funds liquidating positions and the resulting market adjustments. The second part focuses on currency positioning, particularly the pound, noting its undervaluation and potential for a short-term squeeze. The discussion includes the effects of Brexit on the pound and differing forecasts for its future value.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the spread between Libor and commercial paper rates indicate about the market conditions this year?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the demand for T-bills affected other market rates according to the text?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications does the short positioning in the pound have for future currency movements?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the impact of Brexit on the trade-weighted pound as mentioned in the text.

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of HSBC's call for pound euro parity and $1.10?

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