The USD came under some further pressure yesterday, following the FOMC rate decision. No action was taken from the central bank in terms of monetary policy, they kept rates unchanged as expected.
They were very much dovish however in their tone, noting that record-low rates will remain at the bottom for the foreseeable future. There was no indication on when these are expected to lift up again, with the economy needing low-interest rates given current fragilities.
Following the rate decision, as per usual the Fed chair Jerome Powell held a press conference. The language he used was also dovish, leaving the door open to further action from the central bank, despite all that has already been taken.
One of the stand out comments from Powell was:
The Fed is committed to using a full range of tools forcefully, aggressively and proactively as long as necessary.
Essentially, there is no limit to what they can or will do in terms of stimulus, which is USD negative.
It is a further weight added to the Dollar this week, given its pressure already, due to the current market tone. Appetite for risk across the markets has been dominant, on the back of; easing of lockdown measures and growing optimism around the Gilead Sciences' drug Remdesivir as a treatment for Covid-19.
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