Sterling Downside Reflects Market's Hard Brexit Concerns, Foley Says

The video discusses the uncertainty surrounding Brexit and its impact on the value of sterling, highlighting market biases and the potential for a hard Brexit. It examines the upcoming UK Parliament vote on Theresa May's deal and its implications for the market. The role of the Bank of England is explored, particularly in relation to interest rates and inflation expectations in the event of a disorderly Brexit.

What is the market's general belief regarding a no-deal Brexit?

• It has no impact on sterling.

• It is already confirmed.

• It will be avoided.

• It is highly likely to happen.

What could happen if Theresa May's deal is approved by the UK Parliament?

• The UK will revoke Article 50.

• There will be relief in the market.

• A no-deal Brexit will be more likely.

• Sterling will drop significantly.

What might the UK Parliament consider if Theresa May's deal is not passed?

• Negotiating a new deal with the EU.

• Holding another referendum.

• Revoking Article 50.

• Increasing interest rates.

Under what condition might the Bank of England consider changing interest rates?

• If sterling appreciates significantly.

• If inflation expectations spike higher.

• If the UK economy grows rapidly.

• If there is a trade surplus.

What is the Bank of England's stance on interest rates in the event of a disorderly Brexit?

• They will definitely increase rates.

• They will keep rates unchanged.

• They will definitely decrease rates.

• Rates could go in either direction.