FXstreet.com (Barcelona) - JP Morgan’s fair value model estimates misalignments take 12 months on average to eliminate one-half of any deviation. “The half-life for G-3 currencies has historically averaged about 18 months”, said analysts Justin Kariya and Kevin Hebner.
According to the model, the fair value of the EUR/USD is 1.2300. “One should note that the short trading history of the euro reduces the reliability of the estimate. The EUR estimate is highly sensitive to the time-period employed in the model regression”, the analysts added.
According to the model, the fair value of the EUR/USD is 1.2300. “One should note that the short trading history of the euro reduces the reliability of the estimate. The EUR estimate is highly sensitive to the time-period employed in the model regression”, the analysts added.
