Fed puts the dollar in place

The EUR/USD may continue its rally up to 1.138 and break through the June’s highs
Donald Trump wants to control everything but the financial markets are ruled by the Fed. The president criticized the central bank for a too grim forecast, but this was necessary. Jerome Powell and his colleagues do not rule out a V-shaped recovery of the US economy, which was voiced by Dallas Fed President Robert Kaplan. However, the basic scenario is still the Nike-shaped recovery of the US GDP. If so, there will be needed huge volumes of monetary stimulus. Once the Fed added more liquidity, the S&P 500 has been up, which has sent the US dollar down.

The Fed has outlined its corporate bond-buying program and the detail of lending to commercial companies. The central bank will create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds. First, it will calculate an aggregate for the entire $9.6-trillion market, according to which it is planned to purchase the securities. According to Morgan Stanley, the Fed will buy corporate bonds for $385 billion, BofA Merrill Lynch believes that it will be about $419 billion. At the same time, the Federal Reserve is willing to give about $ 600 billion in loans to businesses with up to 15,000 employees and incomes up to $5 billion. Banks, which give them money, can sell up to 95% of loans to an investment agency organized by the Boston Federal Reserve
Dynamics of the U.S. dollar and S&P 500

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