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?

Evaluate responses using AI:

OFF

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

Evaluate responses using AI:

OFF

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

Evaluate responses using AI:

OFF

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

Evaluate responses using AI:

OFF

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

Evaluate responses using AI:

OFF