Sentiment is bearing on the cautious side this morning, with riskier currencies being sold and safe havens being bought again. This risk-averse mood is creeping back into traders’ minds, after fears of a second wave of COVID-19 cases start to rally around certain parts of the globe. In the Australian state of Victoria, the army has been drafted in for door to door testing in more specific parts of Melbourne’s suburbs after a spike in cases. This has given GBPAUD the legs to break through the 1.81 mark at the time of writing.
Across the pond, there was a daily increase of 36,000 which is a near-record number of new cases daily. The governors of New York, New Jersey and Connecticut have issued self-isolation measures for travellers coming from the western and southern states, as cases are surging and not decreasing. This leads to fears that the situation in the US is getting worse and not improving. This message is also being echoed across central and southern America, with cases in Brazil passing 1 million people. The World Health Organisation has warned the worst is yet to come in the continent.
There were also rumours out of Washington that the US government were planning on imposing tariffs on EU imports for aeroplane parts. As President Donald Trump begins to ramp up his election campaign, the message will remain the same as his last, for manufacturing and jobs to return to the US – Make America Great Again. This is coming at a very bad time however, with the global economy slowly dragging itself from lockdown.
Have a great day,
Author: Jack Nicholls, Relationship Manager
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