‘Brexit’ – Could Pound Volatility Get Worse?

The video discusses the financial implications of Brexit, focusing on the volatility of sterling and its impact on markets. It highlights the market's pricing of Brexit risk, the potential for further sterling weakness, and the strategies investors are using to hedge against currency risk. The discussion also covers the implications for UK equities, inflation, and the broader economic outlook, emphasizing the importance of understanding market dynamics and investor behavior in the context of Brexit.

How has the market reacted to the Brexit risk in terms of sterling volatility?

What does the 'Big Mac index' analogy suggest about the fair value of the pound?

In what ways have global investors adjusted their allocations to UK equities?

What are the potential implications of a weak sterling on UK inflation?

What are the concerns regarding the Bank of England's response to potential inflation due to sterling weakness?