FX Valuation Snapshot: FX Valuation Snapshot (April 2026)

Research evidence excerpt

FX Valuation Snapshot: FX Valuation Snapshot (April 2026)

Deutsche Bank

Research

Global Foreign Exchange Date

14 May 2026

FX Valuation

Snapshot

FX Valuation Snapshot (April 2026)

Shreyas Gopal

The latest results from our trade-based models (DBeer, FEER, PPP): Strategist

Our trade-based models find that CEE FX remains expensive, led by RON. While we +44-20-754-51501

have seen some leu depreciation recently, we see the potential for this to extend

Carlos Munoz-Carcamo

further (here). Elsewhere, while HUF's rally has pushed the forint further into Macro Strategist

overvalued territory, we put more weight on the positive implications of a credible +1-212-250-2259

path towards EUR adoption (here). Asia FX continues to screen cheap, led by KRW

Charlie Hyams

and CNY. In addition to remaining positive on the yuan, we have recently added won

Strategist

longs, reflecting a supportive domestic and external backdrop (here). In LatAM,

+44-20-7547-8718

valuations remains dispersed, with MXN remaining the most expensive currency

and BRL still screening cheap on DBeer despite recent outperformance.1 Christabel Charles

Research Analyst

In G10, AUD, USD, and CHF remain the three most expensive currencies. On the

former, however, bilateral valuations vs the USD are still far from stretched and we

continue to see further upside (here). At the other end of the spectrum, JPY and

NOK stand out as the most undervalued, and we remain long the krone. CAD

continues to screen cheap as the currency lags commodity-exporting peers.

The latest results on our capital-based model (Cap-PPP)

Our Cap-PPP results show that in EM, COP and ZAR screens as the most expensive.

By contrast, South Asian FX screens undervalued (IDR, PHP, INR), joined in G10 by

NZD.