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Fed Move Slams USD


The dollar collapsed following the FOMC monetary policy decision in the Wednesday afternoon session. Although the Fed left its benchmark interest rate unchanged at 0%-0.25%, it announced additional measures to prop up the economy and loosen credit to the markets. The statement announced, "To provide greater support to mortgage lending and housing markets, the Committee decided to increase the size of the Fed's Balance sheet further by purchasing up to an additional $750 billion of agency MBS, totaling $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion".



The Fed also announced the purchase of up to $300 billion of longer-term Treasuries in the next six months. The surprise move by the Fed was lauded by the US equity markets, sending the Dow Jones higher by over 1.5% and the S&P 500 sharply up by over 2.4%. However, the greenback sold off heavily - tumbling to a fresh two-month low against the euro at 1.3436.



GBP Recovers from Jobs The pound was initially lower versus the dollar and euro, slipping to 1.3847 and 0.9414, respectively. Dragging the sterling sharply lower was a dismal report on the UK jobs data. The January ILO unemployment rate edged up in line with expectations to 6.5%, versus 6.3% in the previous month. The February claimant count spiked up by 138.4k, bringing jobless claims to 1.39 million - which marked its highest level in 38-years... Read up the rest of the guide that forcasts forex news on FAPTURBO First Real Money Forex Trading Robot Automated Forex ...

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Traders Sidelined Ahead of NFP




Traders took to the sidelines ahead of the key US jobs data later in the session, with the major currency pairs consolidating within range. The greenback remains buoyed against the majors, benefitting from continued safe-haven flows amid steep drops in global equity bourses. The Dow Jones breached key support levels, plunging by over 4% to close at a level not seen since 1997 while the Nasdaq and S&P 500 also plummeted by over 4%. Tokyo's Nikkei average is trading sharply lower by mid-session Asian trading, down by over 3%.



The dire global economic recession was underlined by rate cuts from the ECB and BoE to record lows yesterday, with both slashing its benchmark lending rate by 50-basis points to 1.50% and 0.50%, respectively. Eurozone Q4 GDP was largely inline with expectations, contracting by 1.5% q/q and 1.3% y/y. In the coming session, markets will closely scrutinize the US February labor report. The unemployment rate is expected to spike to 7.9%, a level not seen since 1984 and up sharply from 7.6% from January.



The non-farm payrolls figure is estimated to reveal a loss of 600k jobs - its worse level since 1974. While a dismal jobs report has largely been priced in by the markets, a non-farm payrolls loss on the scale of 650k or greater - its largest in over 60-years, will prompt another bout of sharp selling in US equities and prop the dollar higher against the majors. ( More.. ) Read the rest of this article at Forexnews: Full article available at Forexnews.com


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