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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
- The HUF remains currently the most ‘undervalued’ currency against the USD among the G10/CEE world (nearly -21.7%), and therefore could continue to appreciate in the short term if market optimism gradually recovers.
- The chart below ranks the major G10 and CEE currencies based on their percentage difference between the current spot rate and their 'fair' value, which we define using a Behavioral Equilibrium Exchange Rate (BEER) model (using terms of trade, inflation and 10y interest rate differentials as explanatory variables).
- The JPY is now ‘significantly undervalued’ against the greenback (-17.7%) following the sharp depreciation in March.
- JPY is the second most ‘undervalued’ currency among the G10 world after SEK (-17.9%)
- Risk-on currency GBP also remains among the ‘cheapest’ currencies (-16.8%) as the pound has been very sensitive to the surge in price volatility since the start of the year.
- On the other hand, the ‘safe-haven’ CHF remains the most ‘overvalued’ currency against the USD (by 7.6%).
Source: 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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