-
FX weekly: Europe vs. US 1-0
A trio of record daily highs in new Covid-19 cases in the US surpassing the April 24th all time high, Texas and Florida now clearly moving back-wards in the re-opening process over the weekend and continued governmental flip-flopping, but it is not as if markets seem overly scared about it. There are several reasons NOT to worry too much about the most recent case-spike. First, it is probably politically unpalatable to implement a new complete national lock-down, why a March-like panic is still unlikely. Second, the Fed has taken over liquidity risks and also partly credit risks since March, why even in case of a new ... (full story)