20 July 2021, EUR/USD
EURUSD trading plan:
U.S. Treasury bond yields tumbled to five-month lows, y as the rapid increase in new coronavirus cases sparked fears global growth would slow and hamper the reopening of economies. The yield on benchmark 10-year notes fell 10 basis points to 1.20%. Fed Fund futures, a widely used security for hedging short-term interest rate risk, showed the chances of the Federal Reserve hiking rates in December 2022 dropped to 58% from 90% on July 13, when the U.S. consumer price index was released. The likelihood that the Fed hikes rates in January 2023 fell to 70% from 100% last week. This is a negative signal for the U.S. dollar!
Investment idea: buy 1.1765 and take profit 1.1840.