Euro Downtrend to Persist for Some Time: Nomura's Oakley

The video discusses the economic growth rates of the eurozone and the US, highlighting the euro's downtrend due to negative interest rates and trade wars. It examines the impact of European and UK politics on currency, particularly the pound's vulnerability due to Brexit and potential UK elections. The biggest risk for sterling is a general election leading to a Labour government, which could cause capital flight due to market aversion to fiscal deficits and nationalization policies.

What is the significance of the Brexit parties' performance in the elections as discussed in the text?

What does the speaker believe will happen to sterling if a general election returns a Labour government?