Fast FX Fair Value Model Back to Selling Nok Sek

Crédit Agricole's FAST FX model has triggered a new short trade in NOK/SEK, identifying it as significantly overvalued. While USD/JPY and NZD/USD also show valuation gaps, they haven't met the 1.5 standard deviation threshold required for a trade signal.

Key Takeaways

• 1.The FAST FX model has initiated a short NOK/SEK trade as the cross is more than 1.5 standard deviations overvalued.
• 2.USD/JPY is currently undervalued, likely due to BoJ interventions, but the gap is not yet wide enough to trigger a buy trade.
• 3.NZD/USD remains in overvaluation territory, but similarly lacks the 1.5 standard deviation threshold needed for a sell signal.

Table of Contents

• Back to selling NOK/SEK
• Related publications
• New trades this week
• FX under/overvaluation – Z-scores
• FAST FX fair value summary
• Short-term fair value charts
• t-statistic charts
• Historical trade performance
• FX Research advanced tools
• Red Mount Analytics
• Global Markets Research contact details

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