Forex Flash: EUR/USD fair value estimate at 1.2300 – JP Morgan

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 EURUSD 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.