Equities and other risk-linked assets gained, while safe havens slid on Monday and during the Asian morning Tuesday on hopes that talks in US Congress over a new coronavirus-aid bill will resume, and perhaps bear fruit as soon as this week. As for tonight, during the Asian morning Wednesday, the RBNZ decides on monetary policy. Although we see decent chances for this Bank to stand pat, we believe that officials will reiterate their concerns over the Kiwi’s appreciation.
EQUITIES GAIN, SAFE HAVENS SLIDE, ON OPTIMISM OVER A NEW US FISCAL PACKAGE
The US dollar traded lower against the majority of the other G10 currencies on Monday and during the Asian morning Tuesday. It underperformed against NOK, CAD, AUD, NZD, and GBP in that order, while it eked out gains only versus EUR, JPY, and CHF. The greenback was found virtually unchanged against SEK.
USD performance G10 currencies