Important events today:
13:15 UTC – US: Industrial Production Change.

The Fed’s new stimulus program has taken a hit – banks lined up for money and racked up $303 billion in cache, sparking a $440.5 billion surplus in the financial system to $3.4 trillion. US banks JP Morgan and Goldman Sachs believe that Top-30 bankers will continue to actively use the new stimulus program.

Apparently, the Fed decided to implement a trick that the Bank of England used last fall when it simultaneously raised the discount rate by 0.25% and printed money to replenish bank reserves. For a while this will help the banking system and the panic will go away, but in a few months these stimuli will have to be stopped in order not to cause higher inflation, and then the problems will begin to show themselves again. The growth of the Fed’s balance sheet is negative for the dollar. The situation is somewhat similar to the events of the fall of 2019, when the Fed unexpectedly started pumping liquidity into the system. The dollar went down against most currencies then, now we can expect a repeat of the trend.

Recommendations: Buy 1.2115/1.2070 and TP 1.2220.