Fed Chairman Jerome Powell, speaking at a press conference dedicated to the results of the Fed meeting, noted the fact that the temporary rise in inflation is not a reason to raise interest rates. Powell and his colleagues do not believe in a stable rise in consumer prices, inasmuch as the labor market is still very far from its normal state. Many traders have been expecting hints from Powell to curtail stimulus measures, but the head of the Fed does not even think about it.

This is definitely a negative factor for the dollar! An uptrend in the oil market will support the pound, insofar as the instruments are historically correlated with each other. Investors are increasing their longs in oil on expectations of a sharp increase of the global economy beginning in the summer, inasmuch as progress is expected in vaccinating the population against COVID-19 in Europe and Asia.

Investment idea: Buy 1.3920/1.3885 and take profit 1.4008.