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Deutsche Bank says Trump presidency + China tariffs = EUR/USD @parity

Deutsche Bank’s George Saravelos spoke in an interview with Bloomberg TV, his main point on the EUR:

“Imagine a situation where the US puts up a huge tariff wall against China,”“All these Chinese goods would have to get diverted into other markets including Europe, so therefore we would see a big deflationary shock in Europe.”
Says such tariffs would be implemented in a more sweeping and rapid fashion if Donald Trump wins the US presidency, leading to parity between the euro and dollar.


more tariffs on China and elsewhere would have inflationary consequences for the USdisinflationary consequences for the rest of the world
This would exacerbate the asymmetry between the Federal Reserve and the ECB

This article was written by Eamonn Sheridan at www.forexlive.com.

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