The high inflation would prove "transitory" | 04 11月 2021

04 11月 2021, EUR/USD

The high inflation would prove "transitory"

EURUSD trading plan:

The Federal Reserve said it will begin trimming its monthly bond purchases in November with plans to end them in 2022, but held to its belief that high inflation would prove "transitory" and likely not require a fast rise in interest rates. Yet even in announcing a $15 billion monthly cut to its $120 billion in monthly purchases of Treasuries and mortgage-backed securities, the Fed did little to signal when it may begin the next phase of policy "normalization" by raising interest rates. "As the pandemic subsides, supply-chain bottlenecks will abate and job growth will move back up," Fed Chair Jerome Powell said in a news conference after the release of the central bank's latest policy statement. "And as that happens, inflation will decline from today's elevated levels. Of course, the timing of that is highly uncertain."

Investment idea: buy 1.1580 and take profit 1.1640.

David Johnson
Analyst of «FreshForex» company
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