The financial system is receiving an inflow of liquidity

19.01.2021

American investors are returning to the market today after the break, and together with them the Federal Reserve will begin its duties. The Fed will buy Treasury bonds in the market in the amount of $1.75 billion. On the one hand, the amount is small, and it will not be able to have a strong impact on the course of trading.

On the other hand, the Fed bought $26.65 billion in bonds last week, and the US Treasury placed $63.5 billion in bonds – withdrawing liquidity from the financial system amounted to $36.8 billion. This week, the Treasury will not conduct operations, and The Fed will buy assets for $16.62 billion. Thus, this week there will be an influx of liquidity into the financial system, which will have a negative impact on the dollar rate.

Investment idea: Buy 1.3580 / 1.3560 and take profit 1.3650.