U.S. home borrowing costs are rising rapidly | 18 February 2022

18 February 2022, USD/JPY

U.S. home borrowing costs are rising rapidly

USDJPY trading plan:

Fed officials discussed the possibility of MBS sales at their Jan. 25-26 policy meeting, with "many participants" saying it might be appropriate "at some point in the future," minutes from the meeting showed on Wednesday. Home borrowing costs are already rising rapidly, with the average contract rate on a 30-year fixed-rate mortgage popping above 4% this month for the first time since 2019, according to the Mortgage Bankers Association. Even before the Fed's first-rate hike - expected to come next month - or the first bond matures from its portfolio without replacement, that key consumer interest rate has surged a full percentage point in less than six months. This is a bad signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: sell 115.32 and take profit 114.71.

In January, traders faced an uncertain, but very volatile situation in the markets: popular stock indices rose and fell in value, technology stocks have been made cheaper, and oil rose moderately but significantly. During such periods, it is especially important to know which instruments can bring profit.

Our analysts have created an investment portfolio that will smooth out anxiety and tell you about profitable instruments in February. The expected income on the portfolio could be 10%.

2 steps to get the Invest-portfolio:

✔ Make a deposit of $90 or more until February 28. You fully use these funds in trading.

✔ Send a request to school@freshforex.com with your account number funded.

David Johnson
Analyst of «FreshForex» company
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