How Low Can the Pound Go?

How Low Can the Pound Go?

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the potential market reaction to a no deal scenario, suggesting that the market is underestimating the risk compared to the Brexit referendum. It highlights the increase in hedging prices against a pound collapse but notes they are not at Brexit levels. The discussion then shifts to potential buying opportunities for Sterling, emphasizing the impact of political developments and monetary policy on the economy. The uncertainty over monetary policy and its effect on interest rates is also addressed.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What role do political developments play in determining the buying opportunity for Sterling?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How might the uncertainty over monetary policy impact the economy in the context of Brexit?

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