Low interest rates in the United States | 29 April 2021

29 April 2021, EUR/USD

EURUSD trading plan:

The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 0.10 percent, effective April 29, 2021. The Federal Reserve will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee's maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses. This is a negative signal for the dollar!

Investment idea: buy 1.2110 and take profit 1.2165.

David Johnson
Analyst of «FreshForex» company
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