HSBC's Bunning: Politics Is Now the Key Driver of FX

The video discusses the bearish outlook on the British pound due to ongoing political and structural challenges in the UK, particularly Brexit. It highlights a regression chart showing the pound's decline and HSBC's prediction of further weakening. The discussion shifts to a bullish view on the US dollar, especially against emerging markets, driven by political factors post-Trump's election. The video emphasizes the role of politics in driving foreign exchange markets, noting the lack of strong political convictions for currencies like the euro and yen. It concludes with concerns about the impact of US policies on global trade, particularly for currencies like the Aussie and Kiwi.

What is the speaker's view on the future of the pound?

What challenges does the UK face that affect the pound according to the speaker?

What is the speaker's stance on the dollar's performance against emerging markets?

How does the speaker believe politics influences currency values?

What are the potential risks mentioned regarding Donald Trump's economic policies?