August 8, 2020

Federal Reserve to adopt a dovish tone

LQDFX Forex news Blog | Federal Reserve to adopt a dovish tone

Amid a surge in coronavirus cases fueling demand for riskier currencies, financial markets expect Federal Reserve to hold fire on fresh steps. —– This month’s spike in infections having forced some states to make a U-turn on reopening their economies. Rising infection rates are leading some analysts to predict strong forward guidance from the Fed on further policy actions. Four U.S. states in the south and west reported one-day records for coronavirus deaths on Tuesday and nationwide cases stayed high. United States struggles to contain a spike in coronavirus cases, dashing hopes for a quick economic recovery. Dollar bears bet FED could hint of other ways to loosen policy further down the road. Investors will also be watching for any indications the Fed will increase its purchases of longer-dated debt. Also, it is of great interest whether Fed will implement yield caps or target higher inflation than previously indicated, building on recent …