Stagflation is a possible scenario | 14 June 2022

EURUSD trading plan:

German Finance Minister Christian Lindner said there was a risk of a period of high inflation and low growth. "Stagflation is a possible scenario," he told a conference of family-owned businesses in Berlin. He said the price pressure could best be countered by unwinding the subsidies that had previously been given out to prop up the economy and that Germany and Europe had to return to fiscal discipline. He added that Germany's constitutional debt brake, currently suspended, would come back into force next year. That would imply a reduction in the level of new borrowing from this year's 140 billion euros to just 10 billion euros.

Investment idea: sell 1.0480 and take profit 1.0420.