The stronger dollar is flowing through into our purchasing power parity (PPP) CPI differential models. Overall against 18 currencies, the USD is overvalued against 12 of them on a PPP basis. What is crucial is that the USD is overvalued against many of its largest trading partners. Of the currencies listed in the title of the blog post, the USD is just slightly over valued against a few (KRW, CHF) to vary overvalued against some of the others (JPY, EUR, NOK, SEK, GBP). Below is a chart for each currency.
USD
Article by Eric Bush, CFA – Gavekal Capital Blog
