FXStreet reports that last night, the Fed slashed rates to zero, restarted QE and introduced a number of funding facilities. Analysts at Nordea expect the Fed to stay on hold for the remainder of 2020.

"The Fed announced that the target range for the federal funds rate is lowered by 100 bp to 0-0.25%. Not since 1982 has the Fed cut rates by 100 bp."

"The Fed will buy at least USD 500 bn of Treasury securities and at least USD 200 bn of agency mortgage-backed securities."

"The decision was not unanimous as the known hawk Mester only wanted a 50 bp cut."

"We do not expect rates to go into negative as the reluctance towards this within the FOMC appears too high. We expect the target range for the federal funds rate to stay at 0-0.25% for the remainder of 2020."