Stagflation? | 04 March 2022

04 March 2022, GBP/USD

GBPUSD trading plan:

Oil prices initially soared as the Ukraine sparked a run-on commodity that raised fears of "stagflation," while equity markets fell as investors gauge the impact of the Federal Reserve's plans to tighten monetary policy. The jump in commodity prices has raised concerns about the potential for stagflation - when rising inflation and stagnate output roils the economy and crimps employment. Investors are more fearful of a Fed reaction to stagflation than stagflation itself. This is a negative signal for the British currency.

Investment idea: sell 1.3338 and take profit 1.3275.

David Johnson
Analyst of «FreshForex» company
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