- Our medium-term BEER model shows that the dollar is not exceptionally expensive against G10 currencies.
- The Ukraine conflict and the exacerbated surge in energy prices have generated some significant shocks in the terms of trade of many G10 economies lately.
- The euro, pound and Swedish krona have seen fair value fall due to the negative terms of trade shock, while commodity currencies like the Australian, New Zealand and Canadian dollars have followed the battered yen into undervalued territory.
For further details see:
Breaking Down G10 Valuation: The Key Is In The Terms Of Trade