
Is the Canadian Dollar overvalued? David Allard, writing at castanet.net has this to say about the valuation of the Canadian Dollar … “From a technical perspective, the Canadian dollar has a lot of strength and momentum supporting it. In the last year, it has risen from 85 cents to a high on Friday morning [...]
Seeking Alpha has once again published investment advice based on the 2010 Big Mac Index and ETFs that track the currencies in the Big Mac Index. In short, the Big Mac Index indicates that some currencies are undervalued and some are overvalued. If you invest long in the undervalued currencies and short in the overvalued [...]
Rob Annabat from SeekingAlpha predicts a rise in the value of the Chinese Renminbi against the dollar. Why? His reasoning is that China is slowly allowing its currency to appreciate against the dollar from8.15 RMB to the dollar in July 2006 to 6.83 to the dollar in July 2008. Incidentally, China claim that they have [...]
For those of you interested in using the Big Mac Index for profit by either buying ETFs that track undervalued currencies or trading in foreign exchange directly, don’t forget about the differences between the short and long run. While PPP will eventually work, it may take years for undervalued currencies to gain value and [...]
The following article is from Seeking Alpha. In short, they are tracking ETFs that mirror currencies represented in the Big Mac Index. The theory is that if you buy currencies that are undervalued according to the Big Mac Index, and short currencies that are overvalued, you will make money when the value of the currencies [...]
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Posted on 03 May 2010
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Posted on 19 April 2010
An update on how a digestible burger index reveals how currencies across the globe is faring, with Stephen Gallo, Schneider Foreign Exchange head of market analysis. Continue Reading
Posted on 07 April 2010
A relatively fixed set of consumer products and services valued and used on an annual basis to track inflation in a specific market or country. The goods in the basket are often adjusted periodically to account for changes in consumer habits The basket of goods is used primarily to calculate the Consumer Price Index (CPI). Continue Reading
Posted on 07 April 2010
Purchasing power parity (PPP) is a theory of long-term equilibrium exchange rates based on relative price levels of two countries. The idea originated with the School of Salamanca in the 16th century [1] and was developed in its modern form by Gustav Cassel in 1918.[2] The concept is founded on the law of one price; [...] Continue Reading
Posted on 07 April 2010
Argentinian Peso and the Big Mac Index Argentinian Peso ETFs Current Value of the Argentinian Peso Continue Reading
Posted on 07 April 2010
Big Mac Index and the Brazilian Real Current Value of the Brazilian Real Brazilian Real ETFs Continue Reading