JLS: Bank of England Price Stability Management Performance

The Bank of England (BoE) the first practitioners of currency band method in FX price stability management truly professional by maintaining the short, medium and long term target zones. Further, based on time series testing on the central parity, it is found that the central parity of the short term target zone and medium term target zone at the lowest tolerance with very minimum alignment on central parity. The central parity for the short term and medium term also managed to be the central parity of the interdays with very minor alignment. Accordingly, the GBP-pegged pairs offer the lowest risk to trade for the interdays, short term and medium term target zones.

Yorum:

GBPUSD will still be under pressure (1.3300/75-1.2700 and lower) until the average traded weighted rates with GBPJPY, GBPCHF and EURGBP to be reached. And, GBPJPY and the GBPCHF still underway to downward while EURGBP still underway to upward.