The Dollar tumbled across the board on Wednesday after the Federal Reserve shocked financial markets with an emergency 50 basis point rate cut.
According to the Fed, “the virus poses evolving risks” with policymakers voting unamously for the rate cut. This move is likely to open doors to further cuts in the future as the Fed attempts to shield the US economy from the negative impacts of the coronavirus outbreak.
In regards to the technical picture, the Dollar Index tumbled following the emergency cut with prices trading around 97.13 as of writing. A breakdown below 97.00 should encourage a decline towards 96.75.
USDJPY sinks below 107.49
The emergency US rate cut sent the USDJPY tumbling below 107.49 on Wednesday afternoon. A weaker Dollar could drag prices towards 106.60.
Gold punches above $1620
Gold prices are pushing higher this afternoon following the emergency Fed rate cut. The prospects of lower interest rates and a softer Dollar should push the precious metal higher.
A daily close above $1620 could open the doors towards $1660.
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