21 Agustus 2020, EUR/USD
EURUSD trading plan:
Negative real yields on US government bonds are forcing investors to increase their long positions on the European currency. The primary dealers in the government bond market expect a discount rate hike in 2024. Initially, bond market participants expected a rate hike in 2023. Laurie K. Logan, who is in charge of open market operations at the Fed, said market expectations for a rate change are logical. Such reverse of trend is negative for the dollar, as we will face a long period of negative real yields on US government bonds.
Trading recommendation: Buy 1.1860 and take profit 1.1914.