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Bank of England’s “dovish hold” hints at December rate cutWhile tech stocks had their worst week since the Liberation Day sell-off in April, currency markets largely took the AI mini-crash in stride.
Stock markets continued to tumble on Wednesday, with the Federal Reserve’s giant-sized interest rate cut providing very little relief for risk assets.The Fed cut rates by an unprecedented 100 basis points on Sunday, while announcing a host of additional unconventional methods designed to protect the US economy from the COVID-19 virus.
The sharp worsening of the coronavirus pandemic, which has led to nationwide lockdowns in Italy and Spain, has shaken world financial markets in the past week. The initial reaction was to send the euro higher, as the US yield curve evaporated and markets priced in Federal Reserve cuts all the way to zero.

The sharp worsening of the coronavirus epidemic, leading to nationwide lockdowns in Italy and Spain, shook world financial markets. The initial reaction was to send the Euro higher, as the US yield curve evaporated and markets priced in Federal Reserve cuts all the way to zero. However, the worsening epidemic news from Euro soon led to a reversal.





