Fed will start hiking its rate in late 2022 | 14 June 2021

14 June 2021, EUR/USD

Fed will start hiking its rate in late 2022

EURUSD trading plan:

The Fed has maintained that it has the tools to deal with accelerating inflation. The central bank may open discussion at the Tuesday-Wednesday meeting about when to begin unwinding its $120 billion per month purchases of government bonds, though most traders don’t expect a decision before the Fed’s annual Jackson Hole, Wyoming, conference in August. Most investors believe the Fed will only start tapering its bond purchases in late 2021 or early next year. Bets in the eurodollar futures markets show investors believe the Fed will start hiking its benchmark rate in late 2022. This is a negative signal for the dollar.

Investment idea: buy 1.2080 and take profit 1.2140.

David Johnson
Analyst of «FreshForex» company
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