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USDCHF Tanks as Contagion Spreads
When the US sneezes, the dollar catches a cold as the country is having a hard time containing the coronavirus. Recent spikes in infection rates and unemployment claims have heightened speculations that the Fed may need to double down on its rescue package.
An ultra-loose monetary policy with massive liquidity would continue to restrain the greenback. With the US economic recovery now in question, investors may turn to a flamboyant euro or a safer asset like the Swisse.
The buck is testing the March low of 0.9200. Should the rate rebound, 0.9400 is major resistance on its way.
EURJPY Gains on Recovery Hope
The euro has gained more traction after the EU leaders struck a deal on the recovery fund. The €750 billion package is a milestone in European integration. It allows commonly-issued debts to be distributed to member states, which would mitigate default risk from weaker economies. The market welcomed this historic move as the single currency...
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