Grounded

Today’s news headlines:

‘Tourism industry reels as coronavirus infection spike triggers European travel curbs’. Hopes of a quick recovery for the tourism industry were dealt a blow following curbs on travel imposed by European countries after a rise in new coronavirus infections. On Saturday night, the UK government said that any Briton on holiday in Spain would be required to self-isolate for two weeks on their return. Meanwhile, France reacted in the same fashion, strongly advising against travel to Spain’s northeast Catalonia region, which has seen a surge in cases. (Financial Times)

‘China reports biggest virus spike since end of Wuhan outbreak’. China is reporting the worst spike in domestic coronavirus infections since it first contained the spread in March, raising fears of a dangerous and widespread second wave of cases. The spike highlights how difficult it is to stamp out the virus, even for a country such as China, which can respond in a decidedly authoritarian manner, locking down large areas in rapid fashion. (Bloomberg)

Today's events, rates, and data 

  • Earlier today, the Bloomberg Dollar Index dropped to a near 18-month low, extending recent losses as bets against the Greenback mounted. Reasons include the worsening relationship with China, uncertainty over the spread of the pandemic in the USA and expectations that the Federal Reserve will slash interest rates again. Meanwhile, spot gold climbed to an all-time high above $1,944, a strong indicator that the global economy is in for a torrid recovery.

Today's events

German ifo Business Climate: 9.00am
USD Durable and Core Durable Goods Orders: 1.30pm

Interbank rates:

GBP/USD: 1.2830
GBP/EUR: 1.0950
EUR/USD: 1.1715
USD/CAD: 1.3378