Good and bad news | 07 Enero 2022

07 Enero 2022, GBP/USD

GBPUSD trading plan:

On the interbank lending market in London, the spread between the Libor rates for the pound and the dollar has widened, which positively for the British currency. Benchmark rose to their highest level since February last year. There’s a real risk that the Fed is being too aggressive. The Fed kicked off the taper of its $120 billion per month purchase of government bonds in November. A month later, it said it would aim to wrap up the taper by March rather than its mid-year target, and its “dot plot” showed a more aggressive path for rate increases than investors were expecting. That led some to wonder whether the central bank might start contemplating outright balance-sheet reductions as another tool to combat surging inflation. This is a positive signal for the dollar.

Investment idea: range 1.3488 -1.3560.

David Johnson
Analyst of «FreshForex» company
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