News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDdK93P https://t.co/ZE0Hgn9PCM
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/GFx3b1W0OD
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment. https://t.co/C7DHnPIeuU https://t.co/K2835aP57Z
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi4143uT https://t.co/zTpqrFIZfk
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
  • RBNZ: - Vaccination program has aided a stronger-than-expected rebound in the global economy - Demand for our exports has fared better than previous recessions
  • Between the volatile risk trend picture at the moment along with the Fed rate decision and expected 100bp hike from the Brazilian central bank both on Wednesday, $USDBRL is going to be a very interesting pair to watch...
  • RT @EricBalchunas: $SPY traded more than the Top 5 stocks combined. Just when you think $SPY is fading away like an aging legend you realiz…
  • Bitcoin sharply lower on the day, but well off session lows around $42,500 $BTCUSD #Bitcoin https://t.co/mPiZMs8eYH
  • You know what index didn't suffer an overtly threatening reversal this past session? The Russell 2000. It didn't continue the same steady climb through 2021 that the Dow, SPX and Nasdaq enjoyed; so not as much excess premium https://t.co/ieHojAC7b5
US Dollar Falls After Fed Cuts Rates to Zero and Launches QE

US Dollar Falls After Fed Cuts Rates to Zero and Launches QE

Dimitri Zabelin, Analyst

US Dollar, FOMC, Fed Cuts Rates to Zero, QE – TALKING POINTS

  • The US Dollar edged lower after the Fed cut interest rates to zero
  • Monetary authorities launched $700bn quantitative easing program
  • Markets anxiously await Fed Chair Powell presser at 22:00 GMT

The US Dollar fell after the Federal Reserve slashed the target range for its benchmark Fed Funds interest rate to 0.00-0.25 percent and announced an asset purchase effort totaling $700 billion. The central bank intends to buy Treasuries ($500 billion) and mortgage-backed securities ($200 billion). It has also opened swap lines with five major central banks - the ECB, BOE, BOJ, BOE and SNB – to bring down the costs of USD liquidity and shake loose credit markets seized up in the panic.

US Dollar Index – 15-Minute Chart

Chart showing US Dollar Index

USD Index chart created using TradingView

Officials stated that they will hold rates near zero until they are confident that the economy is no longer vulnerable to a downturn caused by the coronavirus. They added that the Fed stands ready to use the full range of tools at its disposal to support credit access. They pledged to act as appropriate to support the economy but warned that the effects of COVID-19 will weigh on economic activity in the near term.

This comes after the Fed caught markets off-guard and unexpectedly cut interest rates by 50 basis points outside of its regularly scheduled meetings earlier this month. The last time the US central bank implemented a maneuver like that was during the 2008 financial crisis following the collapse of Lehman Brothers. Looking ahead, investors will be closely watching Fed Chair Jerome Powell’s press briefing at 22:00 GMT.

US DOLLAR TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES