{"id":165922,"date":"2020-03-04T08:51:27","date_gmt":"2020-03-04T13:51:27","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165922"},"modified":"2020-03-04T08:51:27","modified_gmt":"2020-03-04T13:51:27","slug":"fed-has-urgently-cut-the-key-interest-rate","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/fed-has-urgently-cut-the-key-interest-rate\/","title":{"rendered":"Fed Has Urgently Cut the Key Interest Rate"},"content":{"rendered":"
March 4, 2020<\/div>
\r\n<\/div><\/div>

by JustForex<\/a><\/strong><\/p>\n

The US dollar continues to lose ground against a basket of major currencies. The dollar index (#DX) closed yesterday in the red zone (-0.20%). The US Federal Reserve unexpectedly lowered its key interest rate by 50 basis points to 1.00%-1.25% two weeks before the planned monetary policy meeting. The head of the Central Bank Powell said that the US economy remained stable, but the COVID-19 virus had brought new risks and problems. The Hong Kong Monetary Authority (HKMA) on Wednesday also cut its key rate by 50 basis points to 1.5% after the Fed. Today, investors are also waiting for the interest rate decision by the Bank of Canada. According to forecasts, the key rate will remain unchanged at 1.75%.<\/p>\n

Also, investors remain focused on the coronavirus. The World Health Organization (WHO) said on Tuesday that coronavirus is not transmitted as efficiently as the flu, but its mortality rate is higher by 3.4%. Meanwhile, South Korean authorities intend to allocate almost $10 billion to fight the coronavirus epidemic, as well as to support businesses and citizens.<\/p>\n

The “black gold” prices jumped after mining restrictions. Currently, the WTI crude oil futures are testing the $47.65 per barrel mark. At 17:30 (GMT+2:00), crude oil inventories will be published in the US.<\/p>\n

Market indicators<\/h2>\n

Aggressive sales were observed yesterday in the US stock market: #SPY (-2.86%), #DIA (-2.89%), #QQQ (-3.21%).<\/p>\n

10-year US government bonds yield fell sharply again. At the moment, the indicator is at the level of 0.98-0.99%.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n
The news feed on 2020.03.04:<\/div>\n