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The Federal Reserve cut the federal funds rate by 100 basis points to a 0.0% to 0.25% range on a Sunday in mid-March 2020, its second emergency cut in two weeks. The dollar nonetheless appreciated sharply because of funding stress in developed and emerging markets.
The Fed also lowered the cost of its dollar swap facility with five other central banks.
A stronger dollar during the funding squeeze lowers dollar-denominated commodity prices and raises the local-currency cost of imported feed ingredients, while the rate cut mainly signals easier financial conditions ahead.
ubp.comMar 17, 2020After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
