The Fed will conduct operations in the Treasury bonds | 06 July 2021

06 July 2021, USD/JPY

USDJPY trading plan:

The US Federal Reserve will conduct operations in the Treasury bond market, within which it will buy securities in the amount of $ 12.4 billion, which is the maximum volume this week. This is a negative signal for the U.S. dollar! OPEC+ ministers called off oil output talks on Monday after clashing last week when the United Arab Emirates rejected a proposed eight-month extension to output curbs, meaning no deal to boost production has been agreed. The failure of the talks, which had partly been about an increase in oil output from next month, helped to drive up international benchmark WTI crude, which was trading 1.1% higher at above $75 a barrel. This factor will have an additional negative impact on the value of the dollar.

Investment idea: sell 111.00 and take profit 110.55.

David Johnson
Analyst of «FreshForex» company
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