Asset manager says USD is overvalued, first Fed rate hike priced in

James Kwok, head of currency management at Amundi Asset Management says the USD is overvalued

(Oh, and if you haven't guessed, this is another catch up post ... this from Bloomberg overnight ... ICYMI)

Says the first Fed rate hike is priced in, the USD won't appreciate until further hikes

• "The U.S. dollar is already overvalued against the euro and yen from most of the fundamental models"

Bloomberg adds:

Amundi's view contrasts with Goldman Sachs Group Inc., which said this month that the euro may fall up to 10 U.S. cents as the European Central Bank is set to increase currency-weakening stimulus to meet its inflation target. The yen will weaken to 130 versus the dollar next year as Bank of Japan Governor Haruhiko Kuroda is set to boost monetary stimulus in October, Goldman Sachs analysts, including Robin Brooks, the chief currency strategist in New York, wrote in a report more than a week ago.

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GS getting the better of this in the context of the EUR fall late last week and into this week. But not the correct catalyst (at least so far)