The bullish signal for the dollar

14 January 2022, EUR/USD

The bullish signal for the dollar

EURUSD trading plan:

San Francisco Federal Reserve Bank President Mary Daly said that with high inflation that's not abating and a labor market on a tear by nearly all measures, raising interest rates in March makes sense. Consumer prices, which surged 7% in December from a year earlier, are rising across a broader range of goods and services than just the pandemic-related ones that saw price spikes early on. Meanwhile unemployment has dropped to 3.9%, not far above where it was before the pandemic hit. "I now see that we are going to need to make some adjustment in the policy rate this year," she said, though unlike some of her colleagues, she declined to predict how many rate hikes will be needed this year, except to say she does not believe it will be more than three. This is a bullish signal for the dollar.

Investment idea: sell 1.1488 and take profit 1.1410.

David Johnson
Analyst of «FreshForex» company
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