Rates continue to go lower
The 50 basis point Federal Reserve interest rate cut led to a wave of US dollar selling. The dollar is down around 50 pips across the board.
The 50 bps emergency move puts another cut on the table for the March 18 meeting. The Fed funds rate is now in the 1-1.25% range but 2-year yields have fallen by 13 basis points to 0.774%, suggesting more is coming.
With the US dollar falling, the euro is now back above 1.12 for the first time since January 5.
