Analysts at Westpac explained that their model continues to gently walk back its long USD exposure, trimming it back to 28% this week, driven mainly by slower growth in US yield support in recent sessions. Key Quotes: “The USD arguably does not have much long-term upside potential. As the slide over shows it is the most overvalued in the G10 on a purchasing power parity basis (one of nine signals in our model), though at +16% its overvaluation is not extreme. At the other end of the spectrum, JPY and the European currencies (ex-CHF) are all broadly undervalued, as a group by more than 20%. The USD’s “overvaluation” is of course traceable to the relatively more advanced stage of the US business cycle compared with the rest of the world. As slide one shows the USD may be the most overvalued currency but it is also the only one that boasts both a positive growth signal and a positive yield signal. Both Canada and the Eurozone enjoy positive growth signals too, but suffer from negative yield signals, while AUD and NZD have a relatively decent total yield signal, but negative growth signals. NZD’s growth signal is notably weak. Our growth signal is based on the OECD’s leading index, unemployment, retail sales, property values and business and consumer confidence. Soft Q1 retails sales and lackluster business and consumer confidence have produced a notably negative NZD growth signal vis-Ã -vis the G10.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/JPY Technical Analysis: Guppy boosted by Peter Navarro’s comments FX Street 5 years Analysts at Westpac explained that their model continues to gently walk back its long USD exposure, trimming it back to 28% this week, driven mainly by slower growth in US yield support in recent sessions. Key Quotes: "The USD arguably does not have much long-term upside potential. As the slide over shows it is the most overvalued in the G10 on a purchasing power parity basis (one of nine signals in our model), though at +16% its overvaluation is not extreme. At the other end of the spectrum, JPY and the European currencies (ex-CHF) are all broadly undervalued, as a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.