Pound Is 'Not Cheap' at Two-Year Low, Deutsche Bank's Saravelos Says

The video discusses the valuation of the British pound, particularly in the context of Brexit. It argues against the notion that the pound is cheap, emphasizing the stress a hard Brexit would impose on sterling valuations. The euro-sterling exchange rate is analyzed, noting that it is around fair value. The discussion includes trading strategies, suggesting that the pound should price in more hard Brexit risks, with a 50% chance of occurrence. The video concludes that the pound is not cheap enough at present.

What is the speaker's stance on the current valuation of the pound?

• The pound is undervalued.

• The pound is overvalued.

• The pound is fairly valued.

• The pound is not cheap.

Why is the euro-sterling exchange rate considered important?

• It has the highest purchasing power parity.

• It represents the bulk of trade.

• It is the least traded currency pair.

• It is the most volatile currency pair.

What is the purchasing power parity level mentioned for euro-sterling?

• 95

• 85

• 80

• 90

What is the suggested euro-sterling exchange rate to price in a hard Brexit?

• 85

• 100

• 95

• 90

What is the speaker's view on trading the pound amidst Brexit uncertainties?

• Invest in the pound.

• Be negative on the pound.

• Trade other currency pairs.

• Stay on the sidelines.