# Fed and the FX markets: Tainted carry | articles | ING THINK

> The Federal Reserve delivered an emergency 50 basis point rate cut, and the dollar initially weakened against major currencies with high-yield currencies performing strongly. The analysis expects possibly three stages of easing totaling 100 basis points and warns that Covid-19 is both a supply and demand shock.

- Date: 2020-03-03 · published 2020-03-03T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7170-fed-and-the-fx-markets-tainted-carry-articles-ing-think
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Further Fed cuts are expected to weaken the dollar, which supports dollar-priced commodities, but high volatility argues against adding carry trades in emerging market currencies.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-02 | [US asset markets: What Fed cuts mean for US Treasuries and the dollar \| articles \| ING THINK](https://feedsoft.ai/events/7151-us-asset-markets-what-fed-cuts-mean-for-us-treasuries-and-the-dollar-articles.md) | -0.8% | +4.0% |
| DXY | 2021-04-28 | [FX Daily: The patient Fed and the “nervous” dollar \| articles \| ING THINK](https://feedsoft.ai/events/47788-fx-daily-the-patient-fed-and-the-nervous-dollar-articles-ing-think.md) | +0.3% | -1.0% |
| DXY | 2023-12-14 | [FX Daily: Fed brings tidings of comfort and joy \| articles \| ING THINK](https://feedsoft.ai/events/8299-fx-daily-fed-brings-tidings-of-comfort-and-joy-articles-ing-think.md) | -1.3% | -1.3% |
| DXY | 2020-04-02 | [FX: In the dollar we do not trust \| articles \| ING THINK](https://feedsoft.ai/events/53574-fx-in-the-dollar-we-do-not-trust-articles-ing-think.md) | -0.5% | -0.8% |
| DXY | 2023-11-21 | [FX Daily: Renminbi shorts on the run \| articles \| ING THINK](https://feedsoft.ai/events/12028-fx-daily-renminbi-shorts-on-the-run-articles-ing-think.md) | -0.6% | -0.7% |

## Sources

- think.ing.com: https://think.ing.com/articles/fed-and-the-fx-markets-tainted-carry/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.