The US Treasury is withdrawing in liquidity | 31 December 2020
31 December 2020, EUR/USD
EURUSD trading plan:
The US Treasury is withdrawing $164 billion in liquidity from the financial system through the placement of Treasury bonds. The volume of transactions is the maximum for the last month. This event will support the dollar in the short term. Gold prices rose for a second straight day as the dollar’s plunge to almost three year lows sent more buyers in the way of the yellow metal, which acts as an inflation hedge and alternative to the greenback. This is a positive signal for the European currency, as assets are correlated with each other.
Investment idea: range 1.2240 -1.2330.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
