Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well as we get things going in the session ahead. It's been a pretty straightforward day so far with the dollar keeping weaker across the board while equities are in a better mood after the Fed went ballistic yesterday.
The central bank unveiled unprecedented measures to backstop the US economy and that is keeping risky assets in a good mood today while the greenback is softer as open-ended/unlimited QE marks down the dollar.
Is this the where the dollar reaches a turning point? Or is the start of today merely just a slight pullback in the aftermath of the Fed announcement?
There are plenty of questions still and plenty of moving parts in the market but I would argue that take what we're seeing today so far with a pinch of salt.
If the North American session yesterday is anything to go by, is that one shouldn't be too early to count out the dollar just yet. The Fed may have thrown the kitchen sink at the problem but that doesn't mean that it is the best solution in a time like this.
In the long-run, sure the dollar may see protracted weakness based on the Fed's policies. But so long as the distressing environment plays out, the near-term moves are still largely dictated by emotions as we navigate through the coronavirus saga.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
