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The Fed delivered an emergency rate cut of 50bps and weighed heavily on the USD. Eurozone PMIs and US economic releases are set to dominate the trading for the day ahead, Haresh Menghani from FXStreet reports.

Key quotes

“In the press conference that followed the statement, the Fed Chairman Jerome Powel said that the fundamental of the US economy remained strong but the coronavirus outbreak posed evolving risks to the outlook.”

“Meanwhile, the yield on the benchmark US 10-year government bond broke the 1% handle to a new record low.”

“The EUR/USD pair finally settled around 45 pips off daily swing high and remained on the defensive through the Asian session on Wednesday.”

“Market participants now look forward to the final Eurozone PMI prints for some short-term impetus.”

“Later during the early North-American session, the US economic releases – ADP report on private-sector employment and the ISM Non-Manufacturing PMI – will influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.”