The previous night, US Federal Reserve Vice Chairman Richard Clarida spoke, saying that CPI growth above 4% is temporary, inasmuch as employment remains 8.2 million below its pre-pandemic peak, and the true unemployment rate, adjusted for participation, is closer to 8.9% than to 6.1%. At the current rate of job creation, it may take about 15 months to arrive at full employment in the economy, and this is precisely one of the key goals of the Federal Reserve. Therefore, Richard Clarida hints to us that if the labor market does not substantially improve in the near future, then the Fed will not think about raising interest rates until August 2022. Regarding the QE program, the Vice Chairman of the Fed said that the monetary regulator will continue to print money and buy back assets until it sees substantial progress in the labor market.

Apparently, this process will take place until August next year, inasmuch as such guidelines have been announced. Insofar as the head of the Federal Reserve Jerome Powell several times this year announced that the regulator will steadily roll back the QE program, it can be assumed that the reduction in asset purchases will begin in the winter. This is a negative signal for the US dollar in the short and medium term, and in the long term, the dollar will be able to demonstrate strength.

Trading recommendation: Buy 1.4040/1.4020 and take profit 1.4105.