A resurge in newly confirmed cases of coronavirus disease has added wrinkles to investors on their foreheads. This was reflected in the weakening of the US dollar against the Japanese yen and the British pound against the euro.
The end of last trading week marked a fall in the value of both the dollar and the pound against other major currencies. And in both cases, the current epidemiological situation has played a role, with a rise in newly confirmed numbers of coronavirus disease in Europe in particular. There are still debates on the British pound in the Bank of England about the possible introduction of negative rates. Indeed, with the advent of the second wave of pandemic, the likelihood of the UK economy being visibly hit again is growing.
The US dollar, which was losing against the Japanese yen for the fifth day in a row, also took a lift on that negative wave. Alongside that, jitters are growing among investors because of the impending presidential election and the uncertainty that relates to the effectiveness of fiscal stimulus unveiled in past months by the Donald Trump administration. And discussion of new binds. In addition, positive data from the U.S. labor market stops short of coming, further escalating concerns about the economic recovery.