HSBC: The current exchange rate of the euro against the US dollar is undervalued.

Analysts at HSBC Bank stated in a report that, according to their model calculations, the current euro to dollar exchange rate is in an undervalued state. They noted, "The rebound of the euro is lower than the path level predicted by the model." The analysts said that the model shows that the US dollar index, which measures the US dollar against a basket of trade-weighted currencies, is currently undervalued, with the euro being particularly pronounced. At the same time, the dollar "may be slightly overvalued relative to its historical driving factors." The analysts also mentioned that the euro exchange rate is usually driven by the trends of the dollar and interest rate differentials, but recently there has been an unusual situation - stock indices have become an important driver of the euro exchange rate.