Pound, Liquidity Shake Up Foreign Exchange Markets

The video discusses the volatility in the foreign exchange market, focusing on the British pound's recent flash crash. It highlights the concept of phantom liquidity, where liquidity appears to vanish during large trades, causing significant market movements. The video also examines changes in market structure due to increased regulation and the role of high-speed traders. It addresses the challenges faced by strategists in predicting currency movements, emphasizing the unpredictability and fragility of the market.

Why is trading currencies particularly difficult during times of market stress?

What predictions are strategists making about the future value of the British pound?