Macro matters
Out of control
Macro matters are very much back in focus as the European nations have begun to impose travel bans on the UK after it reported a more-infectious and “out of control” coronavirus variant. The BBC reported that Ireland, Germany, France, Italy, the Netherlands and Belgium are all halting flights. The measures vary and are initially short-term but the French rules also affect Channel freight.
In addition, it was reported citing sources that there will be no post-Brexit trade deal between the UK and EU unless there is a “substantial shift” from Brussels in the coming days. As a result, GBPUSD opened sharply lower and USDJPY which, following initial support by a stronger USD, reversed gains on safe haven flows.
In the Markets
In a similar fashion and much to disappointment of Bitcoin maximalists, Bitcoin also traded akin to a risk asset, falling into the low $23,000 zone.
However, it is worth remembering the price action during the course of March earlier this year when the news of the pandemic hit the global markets the hardest. Back then, the initial sell-off in equity markets was also mimicked across digital assets, but the subsequent recovery was also more or less in lockstep.
Granted, the matters now are somewhat more complicated by Brexit and the uncertain follow through, but at least the US elections are over and done with and if one believes the latest headlines, policy makers in the US are close to finalizing details of a $900 billion coronavirus-relief package.
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