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The Federal Reserve cut its target range to 0%-0.25% on a Sunday and said it would expand its balance sheet by at least $700 billion in the coming weeks. The dollar fell against the yen in Asian trade on Monday, while traders looked to the Bank of Japan for its next move.
A zero-rate policy and large balance-sheet expansion weaken the dollar, which tends to lift dollar-priced commodities and can attract fund flows into raw materials. Feed buyers should expect firmer dollar-denominated input prices if the trend holds.
reuters.comStanley WhiteMar 16, 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.
