The Fed is continuing to print money | 09 December 2021

09 December 2021, GBP/USD

The Fed is continuing to print money

GBPUSD trading plan:

Last week, investors were frightened by the Fed statements about a possible reduction of stimuli. Rhetorically, everything looks scary, but really, for some reason, everything is completely different. 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 autumn the volumes in such operations were at the level of $1150 billion per day, then at the beginning of December it rose to $1480 billion. 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 1.3180 and take profit 1.3335.

David Johnson
Analyst of «FreshForex» company
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