British Pound Stops Dropping

The video discusses the impact of Brexit on the British pound, noting a significant drop in trade-weighted terms. It examines the shuttering of real estate funds and the potential for market overreaction. The discussion extends to possible currency fluctuations, with central banks like the Bank of England and ECB potentially intervening to stabilize markets. The video also explores the political and economic implications for the Eurozone, suggesting that markets may not fully account for the referendum's impact. Finally, it considers the ECB's strategies, including asset purchases, which could lead to further euro depreciation.

What factors contribute to the current trading situation of the pound in relation to Brexit?

How has the Brexit referendum affected the trade weighted terms of sterling?

What are the potential consequences if the pound drops significantly against the dollar?

Discuss the implications of the Bank of England's actions on the euro's value post-Brexit.

In what ways might the European Central Bank respond to the fallout from the Brexit referendum?