On a 12-24 month basis I take the otherside of that. Just looking at which among these undervalued currencies I go after. Thinking Canada for starters...
1) Donald Trump told the Wall Street Journal last week that the US dollar is “too strong. And it’s killing us.” On that single statement alone, the dollar index fell 1%. 2) Fed Chair Janet Yellen has also weighed in on the overvalued US dollar, calling it “a drag on U.S. growth”.
As always... expecially with currencies IMO... why would it be overvalued? Is it because US will be leading in raising rates? Or is it because Europe isn't going to raise rates this year? My best bet... maybe CAD? When their inflation rate will pickup, they will raise rates fairly quick I think.
Boc will not raise their interest rate this year. Among major currencies, Euro and pound are overvalued.
Well, there are several candidates: My list is as follows, from most undervalued to less: - Yen - Franc - Australian - Canadian - New Zealand - Pound The euro I do not even consider here because it is a "sick" currency. Eventually will fare much worse than the pound did recently.