Important events today:

07:00 UTC – GB: December inflation.

The European Central Bank published statistics on the dynamics of changes in assets on the balance sheet. The figure is up €20.7 billion over the last week, up from €6.9 billion last week. Despite all the words of Christine Lagarde about reducing the pace of asset purchases, the monetary authorities are still printing money aggressively.

The US also prints money to buy assets, but not to the extent that is good for the growth of the USD. Market participants are now mainly waiting for the growth of interest rates of the Fed.

Dollar-correlated 2-year US Treasuries are now 0.78% above the discount rate. So, in 2022, the market expects from the Federal Reserve to raise the rate at least three times. Since no change in the rate is planned in the eurozone, a negative fundamental background is forming for the EURUSD pair.

Recommendations: Sales 1.1345/1.1375 and TP 1.1279.