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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- This chart shows the dynamics of the current EURUSD spot current with the OECD-Eurostat PPP (Purchasing Power Parity) rate, which is based on a theory that gives implied 'fair' exchange rates based on a relative price level of two countries.
- It is interesting to see that EURUSD is still standing far below (15% undervalued) its 'fair value' of 1.4060 despite the recent depreciation of the US Dollar (since March 2020).
- Even though some investors have criticized the PPP model (especially for the Euro), empirical studies have shown that exchange rates tend to converge towards their equilibrium rate (PPP) in the long run.
- Can the Euro continue to appreciate against the USD if uncertainty rises?
Source: OECD. Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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