- The uncertainty over the economic outlook is now arguably the highest it has been over the past several years.
- The war in Ukraine is having a significant impact on trade flows - particularly in agricultural commodities. Alongside China lockdowns, bottlenecks look set to worsen in the near term.
- On balance, the Russian Ruble, Mexican Peso, and Singapore dollar appear to be the most "overrated" (or overvalued) currencies.
- When looking solely at the major currencies, we see that the Canadian dollar and Australian dollar stand out among the rest as the most "overvalued" currencies.
- If you are a contrarian investor, buy the Japanese yen and the British pound.
For further details see:
May 2022: Forex Relative Valuation And Trading Opportunities