Market mood has been positive, lowering demand for the safe haven dollar, but that could change due to rising Sino-US tensions and concerns over the US economy, reports FXStreet analyst Yohay Elam.
“Sino-American tensions remain high on several fronts. U.S. continues to accuse China of not keeping coronavirus under control as senior White House advisor Peter Navarro said the world’s largest economy has deliberately sent infected people to plant the seeds disease in other countries. “
“Hu Xijin, the editor of the Global Times, pleaded for his country to acquire additional nuclear weapons in the midst of the American aggression.”
In a 60-minute interview, Jerome Powell said it could take until the end of 2021 for the economy to recover, and in any case – he doesn’t expect full recovery without a vaccine. Powell warned that the unemployment rate could reach 25%. ”
The largest economies in Europe are gradually opening up. However, doubts remain as to the ability of the ECB to provide assistance. The German Constitutional Court’s decision that the part of the ECB’s bond purchase program is illegal may limit future actions and the willingness of governments to spend. “