ING’s Knightley Sees GBP-USD Trade to Be Above 1.40 in Next Few Months

The video discusses the current market trends, focusing on the impact of Brexit on the UK economy and currency. It explores the potential for a softer Brexit and its implications for sterling and gilts. The political challenges within the Conservative government regarding Brexit are also analyzed, highlighting the difficulty in achieving a softer Brexit scenario.

What is the expected impact on the British pound if a softer Brexit occurs?

• The pound will remain stable.

• The pound is expected to strengthen.

• The pound is expected to weaken.

• The pound will become highly volatile.

How might gilts be affected in a hard Brexit scenario?

• Gilts will remain unaffected.

• Gilts will likely see an increase in demand.

• Gilts will become more volatile.

• Gilts will likely see a decrease in demand.

What is a potential challenge for the UK economy even in a softer Brexit scenario?

• Increased inflation rates.

• Difficulty in attracting capital.

• Decreased consumer spending.

• Higher unemployment rates.

What political change might facilitate a softer Brexit according to the discussion?

• A complete reversal of Brexit.

• A new referendum on Brexit.

• Theresa May stepping down and a new compromise candidate emerging.

• A coalition government with the opposition.

What is the market's current sentiment regarding the likelihood of a softer Brexit?

• The market is optimistic about a softer Brexit.

• The market is doubtful about a softer Brexit.

• The market is confident in a hard Brexit.

• The market is indifferent to Brexit outcomes.