USD, EUR, JPY, CHF Target Rate/Central Parity Limit Prices
The EURUSD, USDCHF, USDJPY target rate (capital flow based-central parity of supply and demand equilibrium) seems to limit the prices by "medium term target zone" and not extended to "long term target zone". The EURUSD strongly defended at 1.2000 as previously estimated and the USDCHF strongly defended at 0.9000/0.9100 as previously estimated and the USDJPY limited at 104.00 (previously estimated to 102.00). The USDCAD strongly defended at 1.3000 as previously estimated as well as GBPUSD at 1.3300/1.3350. The AUDUSD and NZDUSD price adjustment was limited to 0.7350 (previously estimated 0.7300/0.7500) and NZDUSD at 0.6770.
The current capital flow based-central parity (equilibrium supply and demand) seems to limit the prices to be managed by "medium term target zone" and not agreed for extension to "long term target zone". Accordingly, EURUSD, GBPUSD, AUDUSD, NZDUSD initiated to bearish in medium term and USDCAD, USDCHF, USDJPY initiated to bullish in medium term. And, the EURJPY, CHFJPY, GBPJPY, CADJPY, AUDJPY, NZDJPY to bearish in medium term and the EURGBP, EURCAD, EURAUD, EURNZD bullish in medium term and the GBPCHF, CADCHF, AUDCHF, NZDCHF to bearish in medium term and the EURCHF sideway by the "two-sided band" as per BIS' report on new policy on EURCHF by SNB.
The expectation for extending to long term target zone likely to be seen by next year 2021.
The current capital flow based-central parity (equilibrium supply and demand) seems to limit the prices to be managed by "medium term target zone" and not agreed for extension to "long term target zone". Accordingly, EURUSD, GBPUSD, AUDUSD, NZDUSD initiated to bearish in medium term and USDCAD, USDCHF, USDJPY initiated to bullish in medium term. And, the EURJPY, CHFJPY, GBPJPY, CADJPY, AUDJPY, NZDJPY to bearish in medium term and the EURGBP, EURCAD, EURAUD, EURNZD bullish in medium term and the GBPCHF, CADCHF, AUDCHF, NZDCHF to bearish in medium term and the EURCHF sideway by the "two-sided band" as per BIS' report on new policy on EURCHF by SNB.
The expectation for extending to long term target zone likely to be seen by next year 2021.
Comment:
The USD and JPY central parity moves in harmony and the EUR and CHF central parity also to move in harmony and both by stabilizing the prices for intraday, weekly, monthly, short term and medium term. Their harmony could be seen by using "currency band" of the G-8 currency pairs of the "bilateral and multilateral time series and interest rate differential based-currency band", the agreed ceiling for equilibrium exchange rate theory by the monetarists and economists for global equilibrium management.