We used our short-term fair value model to gauge any mis-valuation of major G10 FX pairs. The model includes the following factors: a) 2-year swap rate differentials; b) relative equity performance; c) relative shape of the yield curve; d) the gauge of global risk sentiment; and e) for commodity currencies also a measures of various commodity prices. In the model, we use rolling betas over a fixed window to ensure the fair values adjust to the changing dynamics and the importance of the drivers behind the currency. Figure 1 below provides a snapshot of the current mis-valuation in the major G10 pairs, differentiated ... (full story)