The Dollar Has Been Overvalued Against The Yen And The Euro.

In recent days, San Francisco Fed chairman John Williams, Saint Louis Federal Reserve Chairman James Bullard and Richmond Federal Reserve Chairman Jeffrey Lacker have spoken on whether they should raise interest rates last week and what will happen in the future FOMC conference.

Lacker said in a statement on Saturday that he opposed the decision of last week's FOMC meeting because he believed that the economy had recovered enough to raise interest rates.

Bullard also pointed out that now is the time to raise interest rates.

Williams said in a speech on Saturday that the possibility of raising interest rates this year still exists, but calls for patience in the market.

Lockhart said that the Fed has achieved the "labor market further improvement" conditions, he is fundamentally optimistic about the economic outlook of the United States, but recent fluctuations are "right".

It is doubtful that it will rise to the long-term goal of the Fed's 2%.

He said inflation is still disappointing, but he added that the recent weakness is due to temporary factors, such as the fall in oil prices. He believes that price pressures will return to the Fed's 2% target over time.

Amundi James Kwok, head of foreign exchange management in London, told Peng Bo that the valuation of the US dollar has implied the expectation of the Fed's interest rate hike.

According to the parity purchasing power index of the organisation for economic co operation and development (OECD), the US dollar has overestimated 14% against the euro and overestimated the yen by 12%.

"According to most basic models, the US dollar has been overvalued against the yen and the euro," Kwok said.

The market does not believe that the Fed can raise interest rates substantially in the future.

Amundi's view contrasts with Goldman Sachs.

Wall Street noted that Goldman Sachs predicted that the European central bank or plans to further expand the stimulus measures, the euro may be down to 10 U.S. dollars against the dollar.

Goldman Sachs predicts that the European Central Bank will maintain quantitative easing at $60 billion a month until the end of 2016.

The plan for September 2016 has been postponed.

In addition, Goldman Sachs expects the entire QE project to end in mid 2017.

"This represents a substantial expansion of the scale of the original project and will have an impact on the euro," Goldman Sachs chief currency strategist Robin Brooks told Bloomberg news.

Depending on the credibility of the European Central Bank's expansion of the QE scale, we expect the euro to fall 6 cents -10 cents against the dollar. "

Over the past 12 months, the dollar has appreciated by 15% against the euro and 10% against the Japanese yen.

As of 11:43 Beijing time today, the euro is against the US dollar.

For 1.1134, the US dollar to the yen exchange rate was 119.83.

Bloomberg data show that by the end of this year, the US dollar is expected to rise to 125 yen to 1 yen and 1.07 euros to 1 euros, according to the strategy.

The federal futures market shows that 39% of the Federal Reserve will raise interest rates in December.

Atlanta Fed chairman Lockhart said Monday that the Federal Reserve voted last week to postpone raising interest rates because of caution.

He still believes that interest rates will rise slightly in 2015, and is expected to raise interest rates gradually after the first increase in interest rates.

"The decision of the Fed is mainly due to prudent risk management and recent market fluctuations," Lockhart pointed out. "As everything stabilizes, I will be ready to take the first step on the road towards a more normal interest rate environment," he said in his prepared speech. "I believe that the" interest rate increase later this year "which was often mentioned before is still effective.