The current situation is negative for the American currency. The structural surplus of dollar liquidity remains on the interbank market. Commercial banks in the United States are again actively involved in reverse REPO operations with the Fed, which still exceed $1 trillion. In the European interbank market the benchmark three-month LIBOR rate has been below the Fed’s median rate for the last three trading days, which also signals an excess of liquidity.

The US Treasury Department could correct the situation, but it will not hold large-scale auctions for the placement of Treasury bonds in the near future. The Ministry of Finance on Tuesday, September 7, will redeem bonds in the amount of $30 billion, which will further increase the surplus of dollars in the financial system.

Trading recommendation: Buy 1.1815/1.1790 and take profit 1.1878.