Market Stress Rises as U.S. Election Looms

The video discusses the increased volatility in the FX market, particularly in light of recent US news and the Trump election risk premium. It highlights the Mexican peso and Swedish krona as key currencies affected by these events. The discussion extends to the impact of global events like Brexit on currencies, with a focus on the Taiwanese dollar and Sterling. The video also explores currency valuation models, emphasizing the undervaluation of Sterling and the potential market reactions to future political developments.

In what way is Sterling described in terms of its valuation and market uncertainty?

What does the speaker imply about the relationship between Sterling and the Euro?

What are the implications of Brexit on currency valuation according to the speaker?