Saywell: Pound Probably Around Most Extreme Level

The transcript discusses the potential impact of Brexit on the market, particularly focusing on sterling's valuation and its potential rebound. It highlights the role of government rhetoric and market speculation in influencing currency values. The discussion also covers the dollar's performance post-Trump election, emphasizing the importance of US yields and Fed policies. The analysis suggests opportunities in currency trading, particularly in low-yielders like the yen, and anticipates potential shifts in euro-dollar parity.

What is the expected fair value of Sterling according to the models discussed?

• 1.10

• 1.35

• 1.20

• 1.50

What is the UK's reliance on due to its large current account deficit?

• Investment inflows

• Tourism revenue

• Export growth

• Foreign aid

What was a significant factor in the dollar's rally after the Trump election?

• Decreased US imports

• Increased US exports

• Higher US yields

• Lower US yields

Which currency pair is considered the top trade for long dollar views?

• Euro-Dollar

• Dollar-Yen

• Pound-Dollar

• Dollar-Franc

What might cause the Euro-Dollar to fall towards parity in the coming months?

• Decrease in US interest rates

• US economic slowdown

• ECB's dovish monetary policy

• Increase in Eurozone exports