Jerome Powell said yesterday that inflation could take more than three years to reach the Fed’s goals. The head of the Federal Reserve announced such a time frame for the first time. What does this mean for the foreign exchange market? The Federal Reserve will be “printing money” to buy assets for a long period of time, and will also keep the discount rate near 0%.

This is a negative signal for the American currency. If a few weeks ago, investment banks from Wall Street considered the possibility of strengthening monetary policy in the United States already in 2022 as a basic scenario, now Powell has dispelled all these rumors and expressed the impossibility of such result. I expect the increase in the euro quotes to 1.2210 in the short term and rising to 1.2555 in April-May.

Investment idea: Buy 1.2160/1.2140 and take profit 1.2210.