The fight 40-year high inflation | 20 Tháng sáu 2022

20 Tháng sáu 2022, EUR/USD

The fight 40-year high inflation

EURUSD trading plan:

Fed Chair Jerome Powell will testify in Congress next week, updating lawmakers on the Fed's plans to fight 40-year high inflation while also pursuing maximum employment, its two sometimes conflicting jobs. The central bank raised the range for its policy rate by 75 basis points to 1.50%-1.75% and published forecasts showing most policymakers support lifting borrowing costs further this year to perhaps 3.4%, and higher in 2023. "The Fed and the ECB have considerable credibility, suggesting that a soft landing is feasible in the U.S. and the euro area if the post-pandemic regime shift is executed well," Bullard said. Powell earlier last week noted that one difficulty facing the Fed is that many of the factors driving inflation, and that will determine the strength of the labor market going forward, are beyond the central bank's control.

Investment idea: sell 1.0535 and take profit 1.0445.

David Johnson
Analyst of «FreshForex» company
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