EUR/USD: Fed weighed heavily on the buck

The Fed slashed interest rates to zero and introduced fresh QE to boost economic growth as the US dollar maintained its strong bid tone, Haresh Menghani from FXStreet reports.

Key quotes

“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 Fed's latest decision triggered a fresh leg down in the US Treasury bond yields and weighed heavily on the buck, assisting the pair to snap four consecutive days of losing streak.” 

“It will now be interesting to see if investors are convinced that the Fed's stimulus efforts are good enough to offset the negative impact of the coronavirus outbreak, which will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus.”