DislikedYou are right, Proximus. How do we decide if the currency is overvalued or undervalued? And even if we do we will have to be able to do that constantly because the undervalued currency may becore overvalued or it's value could just decreas a bit. That has to be measured too. And every currency or currency pair responds somewhat differently to affecting factors. So the sensitivity has to be taken into account as well. And Buffet always had crazy ideas :-DIgnored
Supply>Demand price decrease
Supply<Demand price increase
Now its not this easy, because you could say that inflation is the dilution of money therefore it increases the supply of a currency, however its manifested wrongly.Because after an inflation raise the currency value usually goes up not down, whereas by common sense it should go down.It's mosly because traders anticipate rate hikes due to inflation increase, so they buy it now before it becomes overvalued.
So we also have to include trader sentiment, because ultimately what the market thinks, will happen, not what old economy textbooks say about what should happen.
But i suggest as a square 1 we should start from the Supply/Demand point of view

"There's a sucker born every minute" - P.T. Barnum