31 January 2022, EUR/USD
EURUSD trading plan:
With inflation higher and lasting longer than expected, the Federal Reserve needs to take its foot off the monetary gas pedal "a little bit" to address imbalances between supply and demand, Minneapolis Fed President Neel Kashkari said. "The way we bring that into balance is, we will tend to tighten monetary policy by raising interest rates," Kashkari tol. Asked how many rate hikes will be needed, Kashkari pointed to Fed policymakers' forecasts from December signaling three rate hikes in 2022. This is a positive signal for the dollar.
Investment idea: sell 1.1187 and take profit 1.1123.