This week the US Federal Reserve began to cut quantitative easing, but judging by the reverse REPO operations, there are no problems with liquidity in the dollar system. Yesterday commercial banks placed $1.58 trillion in accounts with the Fed, which is a five-week maximum.

This is a positive signal for the American stock market, inasmuch as excess liquidity allows bankers to actively speculate on the stock exchange. This factor, in turn, will have a favorable influence on the quotes of this currency pair, insofar as it is historically correlated with the S&P500 index. The American stock market is trading one step away from the historical maximum, and I have no doubt that we will see a new record.

Trading recommendation: buy 114.15/113.89 and take profit 114.90.