Forex Today: Fed announces QE, investors still scared

Here is what you need to know on Tuesday, March 24^th:

The number of coronavirus cases worldwide has increased to 372,500, while the death toll is up to 16,381. In the US, the number of cases jumped to 41,700. Italy reported fewer cases and fewer deaths for a second consecutive day, although the numbers are still huge. Fear and uncertainty remain high, as the market could only speculate about the economic effects of the current crisis.

The US Federal Reserve announced its largest-ever easing package ahead of the US opening. The central bank said it would buy unlimited Treasuries and mortgage-backed securities in order to support the financial market. The central bank also established loan facilities, two to support credit to large employers, and another so-called TALF, the Term Asset-Backed Securities Loan Facility, to support the flow of credit to consumers and businesses.

Wall Street bounced off early lows, but the three major indexes closed in the red, as despite Fed’s massive stimulus the US Senate failed to pass a stimulus package. Congress will likely continue to discuss it next Friday.

US Treasury yields edged lower, with the yield on the benchmark 10-year note falling to 0.69% to finally settle at 0.78%.

The EUR/USD pair faltered at around 1.0830, finished the day with modest gains above 1.0700.

GBP/USD settled around 1.1500. UK PM Johnson addressed the nation after the US close. "I must give the British people a simple instruction, you must stay at home," Johnson said. He also announced the UK would close all non-essential stores, while public gatherings with more than 2 people banned.

Japan will release the Jibun Bank Manufacturing PMI while Australia will publish the Commonwealth Bank’s indexes on manufacturing and services. All of them are preliminary estimates for March and may be early indicators of the results of European and US indexes to be out later in the day.

Crypto Today: Bitcoin bulls push price back above $6000; but technical vulnerabilities remain

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.