Why Sterling Still Fell on U.K. Economy Expectations Beat

The video discusses the Bloomberg Pound Index and the impact of Brexit on sterling. It highlights the Bank of England's economic forecasts and the low probability of an interest rate cut. The discussion extends to market trends, including gilt yields and future rate predictions, emphasizing the influence of crowded positioning. The video concludes with an analysis of global economic implications, focusing on central bank actions and currency trends, particularly the dollar-yen cross.

What is the primary reason for the pound's lack of rise despite strong economic data?

• Increased investor confidence

• Political concerns over Brexit

• Positive economic forecasts

• Improved trade relations

What is the probability of a rate cut by the Bank of England in the upcoming meeting?

• 50%

• 2.8%

• 10%

• 37.7%

What is the market's expectation for interest rates in the latter half of 2017?

• A rate cut is more likely

• A rate hike is more likely

• Rates will remain unchanged

• Rates will fluctuate significantly

How has the US 10-year yield compared to expectations from the previous year?

• Higher than expected

• Lower than expected

• Exactly as expected

• Unpredictable

What is the current trend of the dollar against the yen?

• The dollar is weakening

• The yen is strengthening

• The dollar is strengthening

• The yen is stable