Is the Dollar Overvalued?
February 1, 2010
The U.S. dollar has had an incredible run over the past 2 months, leading many traders to wonder whether the dollar is overvalued. The answer is NO. Based upon purchasing power parity, all of the major currencies are still very overvalued against the U.S. dollar - particularly the Aussie.
What does this mean? From a valuation stand-point, the dollar still has room to rise.
Posted in US Dollar
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February 1st, 2010 at 6:09 pm
Is the renimbi the only undervalued one?
How much is it undervalued by?
February 2nd, 2010 at 9:37 am
CNY is estimated to still be 20-30% undervalued
February 3rd, 2010 at 2:25 pm
Good job on the technical analysis. I see the FX market trends going the same way you do. Also, I appreciate the education you have on this site. I guess I still have a lot to learn.
February 9th, 2010 at 3:47 pm
Are artifacts of the mechanical differences between the US and the Eurozone responsible for a perpetual skew in PPP, no matter the chance for arbitration, thus making a direct PPP comparison apples to oranges. If so, what is the equilibrium difference? What’s the average skew in PPP between the US and the Eurozone or the last few years. What impact is local demand having on prices which show up in the PPP calculation?