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Our approach to currency valuation

This Focus provides an overview of the concepts and models underpinning our new FX Markets Valuations Monitor. It is split into three sections. The first explains our framework for thinking about currency valuations. The second provides details on the key concepts and models we use to estimate “equilibrium” exchange rates. The third describes how we apply these tools in our analysis of currencies, and how best to interpret the outputs from our suite of models.

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