We open Buy positions for two reasons. Firstly, the Federal Reserve will make more than double purchases of Treasury bonds today compared to Monday and it will have a negative influence on the value of dollar. The increase of dollar’s liquidity in the financial system will contribute to a short-term depreciation of the American currency. Today the US Treasury will place and redeem $120 of Treasury securities. This is a neutral factor for the foreign exchange market. On Friday, January 15, the Ministry of Finance will place bonds in the amount of $63.6 billion. The outflow of liquidity will lead to an increase in the dollar at the end of the week.

Secondly, investors are buying copper actively today and it will have a positive influence on the euro since the asset is historically correlated with each other.

Investment idea: Buy 1.2120 / 1.2100 and take profit 1.2200.