Benchmark U.S. Treasury yields jumped | 19 January 2022

19 January 2022, EUR/USD

EURUSD trading plan:

Benchmark U.S. Treasury yields jumped to two-year highs and two-year yields breached 1% as traders prepared for the Federal Reserve to be more aggressive in tackling unabated inflation. Investors are zeroing in on next week's Fed policy meeting for more clarity on central bankers' next moves to rein in inflation. Data last week showed U.S. consumer prices increased solidly in December, culminating in the largest annual rise in inflation in nearly four decades. We are at a path for higher yields throughout the year which will limit the upside to the European currency. If the Fed hikes rates next week, euro could see a selloff below 1.1150.

Investment idea: sell 1.1354 and take profit 1.1300.

David Johnson
Analyst of «FreshForex» company
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