On Monday, Bank of America research noted.....>

FOREX: On Monday, Bank of America research noted that they updated "equilibrium

estimates and discuss current misalignments in G10 FX, based on a number of

methodologies. Valuation is not what is driving FX during the Covid-19 crisis,

and we cannot ignore either the current highly fragile backdrop or the

possibility that the aggressive monetary and fiscal measures deployed to deal

with the crisis will impact both the timing of an eventual pull to equilibrium

and perhaps the equilibrium level itself. Nevertheless, it can still be

interesting to take stock of where G10 currencies stand compared with their

long-term equilibrium. We use six different methodologies: deviation of REER

from its historical average, Purchasing Power Parity, Fundamental Equilibrium

Exchange Rate, IMF external sector assessment, Bloomberg REER model and our

Behavioural Equilibrium Exchange Rate model. Although the results vary depending

on the methodology, most results agree that the USD and CHF are the most

overvalued G10 currencies, while SEK and JPY the most undervalued. EUR is also

undervalued, while the results are mixed on GBP. Most results also point towards

some CAD overvaluation and NOK undervaluation."