Yesterday the head of the Federal Reserve System announced that the time for raising interest rates in the United States will come “not soon”. The regulator will inform in advance about the curtailment of the purchase of assets, dispelling assumptions about the imminent start of the reduction of incentives. According to Powell, the economy is far from the goals of the Fed, so he sees no reason to change the ultra-soft policy “until the job is fully and certainly done”.

This is a negative signal for the US dollar, as rising inflation in the United States makes the dollar less attractive to investors. The effective federal funds rate in the United States is now 0.08%, which makes it pointless to invest in the American money market with in inflation rate of 1.4%

Investment idea: Buy 1.2140 / 1.2120 and take profit 1.2210.