Yesterday, the FOMC decided to by 50bps, the first emergency move outside a scheduled meeting since the 2008 financial crisis, in an attempt to safeguard the world’s largest economy from the impact of the coronavirus. However, markets did not cheer the move for long, with Wall Street indices closing the US session nearly 3% down. Today, it’s the turn of the BoC, which is also expected to but the big question is by how much.
FED DELIVERS THE FIRST EMERGENCY CUT SINCE THE 2008 CRISIS
The dollar continued trading lower against all but one of the other G10 currencies on Tuesday and during the Asian morning Friday. It lost the most ground against SEK, AUD and JPY, while it eked out some gains only versus CAD.
USD performance G10 currencies
The strengthening of the safe-haven yen and the commodity-linked currencies does not paint a clear picture with regards to the broader market sentiment and thus, we will have to turn our gaze once again to the equity world. Major EU…