The Fed’s decision to ease further helped gain some traction on Monday the US central bank slashed interest rates to zero and introduced fresh QE, Haresh Menghani from NDDFX informs.
“As investors digested the Fed’s move on Thursday, to inject $1.5 trillion into the financial system, the greenback remained well supported by its status as the world’s most liquid currency.”
“The US central bank also announced a fresh round of quantitative easing and pledged to restart buying a total of $700 billion in US Treasuries/mortgage-backed securities to shore up economic growth.”
“The latest announcement triggered a fresh leg down in the US Treasury bond yields and weighed heavily on the USD, which eventually provided some immediate respite to the major.”
“Developments surrounding the coronavirus saga might continue to act as an exclusive drive the broader market risk sentiment and infuse some additional volatility in the FX market amid absent relevant market-moving economic releases on Monday.”