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The Fed announced Treasury and agency MBS purchases and new facilities worth up to $300 billion to support credit flows. The euro gained against the dollar while gold surged and commodity currencies and sterling came under pressure.
Expanded Fed support lifted the euro against the dollar, while risk aversion weighed on commodity currencies. Gold strength reflects weaker confidence in fiat currencies.
exchangerates.org.ukTim ClaytonMar 23, 2020After 388 past bullish macro events, Euro (USD per EUR) moved a median +0.3% over 5 sessions (62% higher; middle half -0.4% to +1.1%), and +0.1% over 20.
After 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.
The Fed's unlimited QE and new credit facilities (23 March) eased dollar funding stress and supported euro gains, a mechanism consistent with the continued rebound into 26 March.
