There is a deficit of dollar liquidity | 22 September 2023

22 September 2023, GBP/USD

There is a deficit of dollar liquidity

GBPUSD trading plan:

Last week saw the most significant reduction in the Federal Reserve's assets in recent times, due to both a reduction in the securities portfolio on its balance sheet and a substantial $48 billion reduction in FDIC loans from the Federal Reserve. As a result, the total reduction in the Federal Reserve's assets amounted to a significant 74.7 billion. US Treasury marketable debt rose by $93bn in the week ending 20th September and by $190bn since the beginning of the month. Not only that, but significant tax payments are due in mid-September. This is a positive signal for the dollar.

Investment idea: sell 1.2290 and take profit 1.2200.

David Johnson
Analyst of «FreshForex» company
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