The risk of recession | 07 7月 2022

07 7月 2022, EUR/USD

EURUSD trading plan:

A deteriorating inflation situation and concern about lost faith in the Federal Reserve's power to make it better prompted U.S. central bank officials to rally around an outsized interest rate increase and a firm restatement of its intent to get prices under control. With families stressed by rising food and gas prices, and no evidence Fed actions to date had begun to arrest the fastest inflation surge in 40 years, many participants judged that a significant risk was that elevated inflation could become entrenched if the public began to question the resolve of the Committee to adjust the stance of policy as warranted. Fed Chair Jerome Powell has amped up his own rhetoric, declaring last week there was a "clock running" on the Fed to show it could tame prices before public psychology begins to change for the worse.

Investment idea: sell 1.0228 and take profit 1.0165.

David Johnson
Analyst of «FreshForex» company
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