Two reasons to buy

05.10.2021

We open Buy positions for two reasons. Firstly, the US Treasury and the Federal Reserve will increase the surplus of dollar liquidity by $33 billion today through operations with treasury securities, which will put short-term pressure on the US currency rate.

Secondly, a rally in the oil market will put additional pressure on the dollar, inasmuch as commodities and the US currency have historically been traded in different directions. OPEC+ countries like the rise in oil prices, and they do not want to increase production of black gold, thereby increasing the structural deficit of supply in the world market. Against this background, oil may gain a foothold above $80 per barrel.

Trading recommendation: buy 1.3575/1.3550 and take profit 1.3645.