US FED CUTS BY 50BP IN SURPRISE MOVE

The US Fed has cut 50 basis points in a surprise move which probably signals a co-ordinated Central bank effort to stimulate growth in the wake of the Covid-19 virus pandemic.

With Central Banks in the UK, Japan and Europe all recently hinting about such action, I think we can safely say that others will follow. Yesterday we saw Australia take rates to historic lows - what is next for the global economies?

To what extent is yet to be seen, with rates historically low, many central banks have nowhere to go to meet such measures. A quick summary is below. EUR/USD is up 0.5%, GBP/USD also surging and stocks are regaining last weeks losses.

However, a rocky road is ahead for FX after this surprise interest move by the Fed