What significant event does the author discuss in relation to its impact on currency pairs?

The fall of the Berlin Wall The Global Financial Crisis of 2008 The Brexit Referendum The launch of the Euro currency

Why did the GBP (Great Britain Pound) experience a significant drop in value following the Brexit referendum?

Increased demand for the Euro A surge in British exports Uncertainty surrounding the UK's economic future outside the EU A rise in tourism to the UK

What is the primary reason the author uses the 'Fairy Trade' analogy?

To illustrate the ease of international financial transactions To highlight the potential for risk-free profits in currency arbitrage To demonstrate the complexity of global interest rate differentials To emphasize the importance of ethical considerations in financial trading

What key concept does the author introduce to explain why the 'Fairy Trade' scenario is unrealistic?

Inflation Trade deficits Forward premia Quantitative easing

According to the author, what is the relationship between interest rates and the future value of a currency?

Currencies with higher interest rates tend to appreciate in the future Currencies with lower interest rates tend to appreciate in the future Interest rates have no impact on the future value of a currency The relationship between interest rates and future currency value is unpredictable