Lates News

Analysts at HSBC pointed out in their latest research report that according to their model evaluation, the current euro to dollar exchange rate (EUR/USD) is significantly undervalued. "The rebound of the euro is far lower than the path predicted by the model." They further explain that in measuring the trend of the US dollar against a basket of major trading partner currencies, the US dollar index (DXY), several key component currencies are currently undervalued, with the euro being the most significant. "The US dollar may be at a relatively high level compared to its historical driving factors," the analysts said. The movement of the euro is usually influenced by the overall trend of the US dollar and the interest rate differential between the euro and the US dollar, but the recent performance of the stock market has also become an important driver, which is not commonly seen.