Sterling Is Seen as Vulnerable to U.K. Vote

The transcript discusses the potential outcomes of the UK elections and their impact on sterling. The base case scenario is that Theresa May will return with a larger majority, which could lead to a short-term sterling rally. However, a strong Tory win might result in a harder Brexit, negatively affecting sterling in the long term. The discussion also covers the challenges of trading UK themes outside of sterling and highlights other global economic events, such as the ECB press conference and FBI testimony, that could influence markets.

What does the speaker suggest about the market's reaction to the potential outcomes of the elections?

What challenges does the speaker identify regarding trading outside of sterling in the context of the UK elections?