Brexit Compounds Pound Pain in U.K. Economy

The video discusses the FX market, focusing on the cable rate and Morgan Stanley's stance on sterling amidst Brexit. It highlights the impact of current account deficits on sterling, the role of interest rates and inflation expectations, and the real yield differentials between the euro and sterling. The analysis extends to European real yields and their effect on currency and monetary policy, drawing parallels with Japan's situation.

What is the consensus regarding the adjustment of the cable rate?

How does the current account deficit relate to the GDP mentioned in the text?

What are the two negative aspects affecting sterling as mentioned in the text?

What is the relationship between real yields and inflation expectations in Euroland?

What challenges do European monetary authorities face regarding the euro?