Friday’s July US labor market release delighted dollar “bulls” – the Non-Farm Employment Change indicator came out better than the median forecasts, which made many investors talk about the forthcoming cut in stimulus from the Federal Reserve. At the moment, the US economy has 5.7 million employment less than it was before the “coronacrisis”.

Therefore, if next month we see the Non-Farm indicator of more than 1 million, then at the Fed meeting on September 22, the regulator may declare its readiness to reduce the volume of QE from January 1, 2022. In the short term, this is a positive signal for the dollar. In the medium term, this is a negative signal, inasmuch as the Federal Reserve will actively print money for several more months, which will increase the already substantial surplus of dollar liquidity.

Trading recommendation: Sell 1.1790/1.1815 and take profit 1.1758.