The current situation in the global banking system indicates a devaluation of the dollar for two reasons. Firstly, in the interbank lending market in New York, the Overnight rate is only 0.01%, which indicates a substantial surplus of dollars from bankers.

Secondly, according to the latest statistics from the Federal Reserve, the Fed’s currency swaps with other world central banks have reached an annual minimum and are less than $1 billion, which indicates that there are no problems with dollar liquidity in foreign markets. Therefore, there is a surplus of dollar liquidity in the United States and beyond, which will have a negative influence on the exchange rate of the American currency.

Investment idea: Buy 1.1880/1.1860 and take profit 1.1950.