Deutsche Bank analyst: The market has not overpriced the Trump effect at all
George Saravelos, the head of currency research at Deutsche Bank, said that the market previously believed that the impact of Trump's election as president was priced in to some extent before he took office. However, in reality, there has been no overpricing for the "Trump effect".
He explained that in our model, the risk premium for the US dollar is only 3%, while it was as high as 10% during the first trade war. The bottom line is that there has been no overpricing for the "Trump effect".
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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