The US Federal Reserve will scale back its asset-buying program by the end of 2022, a Reuters poll showed. Nevertheless, Fed Chairman Jerome Powell said on Wednesday that there is still a long way to go before ending supportive monetary policy, inasmuch as 7.5 million jobs are still missing from the pre-pandemic period.

A poll of more than 100 economists, conducted in July 12-15, showed that the US economy will grow at a healthy pace, and that higher inflation will persist longer than previously expected. In a June poll most economists predicted that the Fed would announce a $120 billion cut in monthly asset purchases this year, and the scaling down will start at the beginning of next year. This is a positive signal both for this currency pair and for the American stock market, inasmuch as these assets are historically correlated with each other.

Trading recommendation: Buy 109.79/109.55 and take profit 110.20.