What's Behind the British Pound's Flash Crash

The transcript discusses the liquidity issues in Sterling, highlighting a significant flash crash attributed to various factors, including computer-generated sell orders and market sentiment. The potential for pound-dollar parity is debated, with Brexit's impact on the currency being a key concern. Regulatory challenges in preventing such crashes are explored, noting the limitations faced by banks under current regulations. The Bank of England's response to Sterling's fall is examined, with a focus on inflation and economic competitiveness.

What factors contributed to the significant bid-ask spread in sterling?

How did the Asian time zone affect the liquidity of the pound compared to the European time zone?

What is the significance of the term 'flash crash' in the context of the pound's recent market behavior?

What role did banks play in the currency markets before the global financial crisis, and how has that changed?

In what ways might Brexit impact the Bank of England's policy decisions regarding inflation?