The Federal Reserve made another emergency interest rate cut yesterday, causing the dollar to weaken. Rates have now been cut to zero in order to support the economy during this coronavirus pandemic, with the Fed saying that it is “prepared to use its full range of tools to support the flow of credit to households and businesses.” They also made the decision to restart their quantitative easing programme. The central bank will meet this week and publish its economic projections on Wednesday.
The dollar rebounded against most currencies at the end of last week. This was due to its safe haven status and US yields rising as coronavirus fears continue to dominate the market.
It’s a busy week of data for the US, with retail sales and industrial production figures released tomorrow. The Federal Reserve will also release their interest rate decision on Wednesday, which could result in another rate cut.
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