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The Federal Reserve announced unlimited quantitative easing and new programmes to support credit markets to address a dollar liquidity squeeze tied to coronavirus restrictions. The dollar slipped as signs emerged that tight funding conditions were easing somewhat.
Unlimited Fed asset purchases and dollar liquidity support weaken the dollar's near-term bid, which tends to support dollar-priced commodities. Feed buyers should note that a weaker dollar can lift US export competitiveness and commodity prices.
reuters.comHideyuki SanoMar 24, 2020After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Unlimited QE and new credit programs eased the dollar liquidity squeeze, so dollar demand fell.
