The Dollar Is Still Too Cheap — And The Fed Isn't Done

The dollar hasn't caught up

The rates regime has changed quickly, but FX has been remarkably slow to follow.

JPMorgan sees the dollar still undershooting the move in relative yields, EUR increasingly rich versus fair value and room for further Fed repricing. At the same time, global growth remains surprisingly resilient, which helps explain why the FX adjustment has been less violent than the rates move.