The latest run of the Danske G10 MEVA model shows that USD has received fundamental support in recent months against EUR, GBP, AUD and NZD. This said, MEVA continues to signal that the greenback is overvalued against notably GBP, CAD and EUR.
GBP/USD, EUR/CHF and USD/CAD stand out as the most undervalued currency pairs in the G10 sphere. EUR/USD continues to look undervalued but less so than previously, as the MEVA estimate has fallen to 1.26 and after the spot moved higher recently.
In the Scandi region, EUR/NOK still appears overvalued despite the deterioration in terms of trade due to oil, while MEVA continues to suggest that EUR/SEK has limited downside potential in the medium term, putting levels around 9.10 as 'fair'.
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