US COVID-19 cases hit daily high, driving up EUR despite EU’s worsening cases

Weekly Market Update 13 Nov 2020 – US COVID-19 cases hit daily high, driving up EUR despite EU’s worsening cases

1. US dollar continues its fall against most of the major currencies, reflecting a growing concern about the worsening coronavirus pandemic in the US and the consequences for the economy, With new virus cases accelerating, Oregon announced a 2 week partial lockdown and New York is considering school closures. While the coming weeks are proving crucial if the states can flatten the curve, the outlook is grim for the US with European nations having little improvement despite stricter restrictions
2. Despite Germany having reported the highest level of COVID-19 cases ever, and its Health Minister cautioning easing restrictions too early on, EUR continues to rise. This suggests that the bullishness of EUR is fuelled strongly by the bearishness of the dollar, especially with ECB being much more transparent with its intentions as opposed to its US counterpart
3. In Canada, markets are expecting stronger numbers as its inflation and retail sales numbers are scheduled to be released this coming week. Expectations are also high for outperformance of AUD and NZD as well, as the upcoming Australia’s labour market numbers are expected to be positive