Political risks carry more impact than policy risks
ANBOUND
The recent change in the dollar trend is considerably great. Firstly, the Trump administration's tax reform has made progress, while the US stocks continue to hit a record high. Secondly, the political risks of the Euro Zone have led to a weaker euro and within short-term there is room for the US dollar to bounce back. All these will test the intrinsic toughness of the renminbi in the future. Anbound's Chief Researcher Mr. Chan Kung pointed out that the most important factor affecting the current world market currency is political risk, which has become more influential than policy risk. A strong Trump is bound to cause a distorted market.