Economists See Pound Falling Futher On ‘Brexit’

The video discusses the potential impact of Brexit on the British pound, predicting significant volatility and challenges in pricing sterling. Historical events like the Northern Rock crisis are referenced to illustrate possible market reactions. The current market is heavily short on sterling, and the discussion includes potential downside moves. Political factors and voter decisions are highlighted as key influences on market behavior leading up to the Brexit vote.

What is the predicted value of the pound in the event of a Brexit according to the speaker?

• $1.35

• $1.40

• $1.25

• $1.50

Which past crisis is mentioned as a comparison to the potential event risk in sterling?

• 2008 Financial Crisis

• Northern Rock Crisis

• Asian Financial Crisis

• Dot-com Bubble

What is the current market position on sterling as discussed in the second section?

• Neutral

• Ultra long

• Ultra short

• Moderately long

What is the potential downside move in sterling that the speaker suggests might be underestimated?

• 10-15 big figures

• 5-7 big figures

• 2-3 big figures

• 20-25 big figures

What makes forecasting the impact of Brexit on the FX markets particularly challenging according to the speaker?

• Lack of historical data

• Predictable voter behavior

• Stable market conditions

• Emotional nature of the decision