Here's Why Everyone Is Short Sterling

The video discusses the current short positions on sterling, highlighting that it is at a near 50-year low in value. It examines the potential impact of a Scottish referendum on currency trade, suggesting it is more political noise than a real threat. The Bank of England's response to inflation and Article 50 is considered, with a focus on external vs. domestic inflation sources. Finally, the undervaluation of sterling is analyzed, with historical context and future currency targets provided.

What is the current sentiment in the investor community regarding sterling?

• Everyone is long on sterling.

• Everyone is short on sterling.

• Investors are confused about sterling.

• Investors are neutral about sterling.

How does the Scottish referendum vote affect the currency trade?

• It leads to immediate changes in currency policies.

• It has no impact on the currency trade.

• It creates significant noise but is largely seen as a political ploy.

• It strengthens the currency significantly.

What is the Bank of England's focus regarding inflation?

• Only external sources of inflation.

• Only domestic sources of inflation.

• Both external and domestic sources of inflation.

• Neither external nor domestic sources of inflation.

How undervalued is sterling against the dollar according to the OECD?

• Around 30%

• Around 60%

• Around 45%

• Around 15%

What is the expected movement for euro sterling by early next year?

• To drop to 60

• To remain the same

• To go back to 76

• To go up to 90