On the eve, the US Federal Reserve released the protocol of its last meeting, in which it was stated that bankers expect an increase in excess reserves in the next four months due to a reduction in funds on the account of the US Treasury. This event will lead to an increase in demand for “risky assets”, which the pound has been historically correlated well with. Additional support for the pound may be provided by the oil market, where a strong upward trend continues.

“At the moment, the market situation is much better than a year ago, but I must again warn us from losing our vigilance. The ambiguity is very high and we need to be extremely careful,” Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said during the International Energy Forum. The Saudis have given the market a signal that they do not intend to increase oil production dramatically, and will do it steadily in order to ensure price stability. This is a positive signal for the market!

Investment idea: Buy 1.3840/1.3820 and take profit 1.3960.