FOREX-The euro has gained more than 1.5% against the US dollar since the start of Monday’s session

The euro has gained more than 1.5% against the US dollar since the start of Monday’s session, with most of those gains coming after yesterday’s announcement from the Fed of an unprecedented rescue package. The American central bank promised to buy unlimited quantities of treasuries and mortgage-backed securities, as well as providing finance programs for households and small businesses. While other central banks promised to do what it takes, the Fed pretty much promised to do everything! This titanic move is primarily designed to help the real economy, at a time of extreme hardship, but is also supportive of the markets. This is reflected in a change in the prevailing sentiment from the extreme risk-off of the last two weeks to a somewhat more positive outlook, as illustrated by the across-the-board gains on risk related assets. The dollar’s losses are due to the extreme burden the American central bank has just taken on; once things start returning to normal the greenback will surely depreciate even more significantly.