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G10 FX Week Ahead: Easing the pain
The spread of Covid-19, its impact on equity markets and what the Fed will do about it are the central focus right now. Investors are fearful that there is more bad news out there and have now priced in one full 25bp Fed cut for the 18 March meeting. Were equities to fall, say, another 10% early next week we could be moving closer to the kind of co-ordinated central bank rate cuts last seen in 2008. For the very short term, much weaker equities and a much deeper Fed easing cycle are a dollar negative. Event risk calendars will be of secondary importance next week. Two issues stand out, though: i) US Democratic ... (full story)