USD/JPY: Decline resumed

Fed’s massive stimulus couldn’t prevent another day of panic selling in equities as US Treasury yields trimmed Friday’s gains and fear rules, Valeria Bednarik from FXStreet reports.

Key quotes

“The American dollar gapped lower against most major rivals after the US Federal Reserve announced a surprise rate cut on Sunday, slashing rates to 0.%.” 

“The Central Bank also announced a  $700 billion worth of bond-buying program and mortgage-based securities buying. Additionally, Powell and Co coordinated actions with five other central banks, opening a dollar swap line.” 

“Japanese Machinery Orders beat expectations in January, up by 2.9% in the month and down by 0.3% when compared to a year earlier.” 

“The US will release today the NY Empire State Manufacturing Index for March, foreseen at 4 from 12.9 previously.” 

“Attention will remain on government measures toward fighting the outbreak. EU Finance Ministers are meeting this Monday, and also the G7.”