EUR/USD hit a low of 1.1050 before the Federal Reserve stepped in to inject $500 billion of liquidity and will do that again today. The departure from markets may continue without coordinated action, Yohay Elam from FXStreet briefs.
Key quotes
“The ECB expanded its bond-buying scheme by a total of 120 billion euros and with a new lending scheme to banks, with favorable rates. The institution was criticized for not cutting rates and further reductions may cause more pain for banks.”
“The Federal Reserve felt the need to intervene with half a trillion dollars of liquidity without early notice and will continue doing so.”
“The government is failing to create confidence. President Donald Trump sent a message of business as usual after his speech on Wednesday, where the absence of material fiscal stimulus weighed heavily on markets.”
“The University of Michigan’s preliminary Consumer Sentiment gauge for March may shed some light on the public’s views on the situation. It is expected to fall from the highs above 100, but it is unclear by how much.”
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