The US Federal Reserve did not change its monetary policy at yesterday’s meeting. Buying assets in the amount of $20 billion per month will be maintained at least until November 3, when the next meeting of the Federal Reserve will take place. Jerome Powell said during a press conference that a strong labor market release on October 8 would allow the US Central Bank to announce a reduction in stimulus at its November meeting. What does the head of the Federal Reserve mean a strong release? There was no specifics. Perhaps Powell is hinting at an increase in the Non-Farm indicator above 1 million.

Therefore, the October labor market report will provide a hint regarding the Fed’s cut in stimulus. Until that time, a mild weakening of the US currency can be expected, inasmuch as the surplus of dollar liquidity in the financial system will increase due to the maintaining purchase of assets by the Federal Reserve.

Trading recommendation: Buy 1.1682/1.1645 and take profit 1.1750.