Rabobank Says Any Pound Rally Limited by Ongoing Brexit Uncertainty

The transcript discusses the British and German governments' decision to ease key demands in Brexit negotiations, leading to a temporary rise in the pound. However, the lack of detailed commitments in the withdrawal deal means continued uncertainty for sterling. The potential outcomes of Brexit, including a hard or soft exit, are explored, with implications for market reactions. The euro's vulnerability to emerging market risks is also considered, with the dollar expected to perform better.

What was the immediate market reaction to the news of the British and German governments easing their Brexit demands?

• The euro rose significantly.

• The pound fell sharply.

• The pound rose, erasing previous losses.

• The pound remained unchanged.

What is the main reason for the limited potential rally of the pound despite a Brexit deal?

• The deal includes all necessary details.

• The deal lacks detailed agreements, leading to uncertainty.

• The deal is expected to be rejected by the EU.

• The pound is already at its peak value.

How does the market generally react to uncertainty in currency situations?

• Currencies tend to appreciate.

• Currencies remain stable.

• Currencies tend to depreciate.

• Currencies are unaffected by uncertainty.

What is the market's main concern regarding a hard Brexit?

• It will strengthen the euro.

• It will create significant economic uncertainty.

• It will lead to increased trade with the EU.

• It will have no impact on the market.

Which currency is expected to perform better in the context of emerging market risks?

• The yen

• The euro

• The pound

• The dollar