New fiscal stimulus in the United States | 10 February 2021

10 February 2021, USD/JPY

New fiscal stimulus in the United States

USDJPY trading plan:

The U.S. dollar index traded near two-week lows as demand for safer assets ebbed, with investors looking ahead to an expected recovery from the COVID-19 pandemic this year, driven by massive fiscal and monetary stimulus. Traditionally viewed as a safe haven, the dollar has sunk against major peers as optimism over monetary and fiscal support from policymakers, robust corporate earnings and the prospect that COVID-19 vaccines could hasten a return to normality in the United States and elsewhere have bolstered risk sentiment.

Investment idea: Sell 104.70 and take profit 104.30.

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David Johnson
Analyst of «FreshForex» company
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