Claim your one month free trial for access to our premium content.



By Bilal Hafeez 22-01-2020

Which FX Valuation Models Work Best?

(5 min read)
Resize text:


While most markets like equities and bonds have well-established valuation models, FX markets often baffle people. What anchors the value of a currency? Well, there are a number of valuation approaches: Purchasing Power Parity (PPP), Behavioural Equilibrium Exchange Rate (BEER), and the Macroeconomic Balance (MB). But which is best? A new ECB paper, The predictive power of equilibrium exchange rate models, puts these three to the test. It finds that the simplest, PPP, is probably the winner, while the more complex and much favoured MB is the least useful...
ALREADY A MEMBER? LOGIN

MACRO HIVE PRIME

PLEASE SELECT MEMBERSHIP TYPE BELOW*

MONTHLY MEMBERSHIP

Cancel Your Trial Anytime

Free

One Month Trial

Then £39 per Month

TRIAL NOW

ANNUAL MEMBERSHIP

Save 20% Compared to Monthly

£7.20

per week

£374.40 per Year

SUBSCRIBE NOW

MACRO HIVE PROFESSIONAL

Pricing
on request

Trade Ideas, Models & More

ENQUIRE NOW

To read this Deep Dive, please become a member

  • Gain access to Hive Exclusives - the highest quality opinion-pieces & analysis by over 35 experienced researchers
  • Gain access to Deep Dives - evaluation of relevant Academic paper & books in today's narrative
  • Also gain access to Bilal’s Top Picks and Podcast Playlists through signing up
Have a Promotional Code? Click here to enter your code

Members

Product Total
Monthly  × 1 £39.00 / month with 1 month free trial
Subtotal £0.00
Total £0.00
Recurring totals
Subtotal £39.00 / month
Recurring total £39.00 / month
First renewal: 23rd March 2020
Free one month trial period. After, you’ll be charged at the monthly rate unless you cancel your membership otherwise.
  • Pay with your credit card via Stripe.