The Federal Reserve is continuing to print money | 26 August 2021

26 August 2021, EUR/USD

The Federal Reserve is continuing to print money

EURUSD trading plan:

The Federal Reserve is continuing to print money and increasing the dollar liquidity surplus. Bankers now have a lot of capital; they don't know what to do with it. Against this background, bankers are involved in reverse repo transactions with the Fed. Such operations are carried out only during periods of excess liquidity. If at the beginning of the summer the volumes in such operations were at the level of $ 600-700 billion per day, then at the end-August it rose to $1.15 trillion. So, the media and economists whip up panic and say that the Fed is going to recall liquidity, and the bankers have an excess of this liquidity.

Investment idea: buy 1.1752 and take profit 1.1805.

David Johnson
Analyst of «FreshForex» company
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