The USD U-shape bilateral currency band indicates that the Fed is refueling the market by supply more liquidity to the market and to allow the USD to be weaker. It is also confirmed by the align, realign and continuously realignment of the USD central rate/target rate/central parity where the price dynamics consistently to weaker the USD in the market.
The market refueling however seems to be limited for 5-6 % on EURUSD, USDJPY and USDCHF in medium term but to allow other G-8 currencies to be stronger more than 10-15 % in the market. The weakening of USD for 0ver 10-15 % will guarantee the G-8 borrowers of USD currencies will be likely not to experience "debt in default" by maintaining their sovereign ratings consistently AA or better from S&P and or its equivalent from Moodys and Fitch. Thus, the G-8 financial stability to be granted, but the risk of global virus Covid-19 economic, financial and humanity terrorism will be widespread accross the globe.
The market refueling however seems to be limited for 5-6 % on EURUSD, USDJPY and USDCHF in medium term but to allow other G-8 currencies to be stronger more than 10-15 % in the market. The weakening of USD for 0ver 10-15 % will guarantee the G-8 borrowers of USD currencies will be likely not to experience "debt in default" by maintaining their sovereign ratings consistently AA or better from S&P and or its equivalent from Moodys and Fitch. Thus, the G-8 financial stability to be granted, but the risk of global virus Covid-19 economic, financial and humanity terrorism will be widespread accross the globe.