USD Remains on the Backfoot Following the FOMC's Massive Monetary Easing Policy

he USD remains on the backfoot following the FOMC's massive monetary easing policy by using its balance sheet in an attempt to unclog credit and reflate the US economy. The increased money supply and lower interest rates should help to boost risk appetite and at a minimum prevent the US economy from falling into deeper recession. The nagging question remains whether this alone can help boost lending given that unemployment is still at lofty levels. Commodities which are priced in USD surged with precious metals and crude oil rising above $52 leading the charge.

This has seen Aud/Usd and Nzd/Usd chalk up gains of 8% and almost 10%, respectively, over the last week. The EUR and GBP were both beneficiaries of the Greenback's current woes rather than any fundamental shift towards both currencies. ECB Webber speaking.

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