By Chris Turner, Global Head of Markets and Regional Head of Research
While monetary and fiscal policy have moved in tandem in the US, coordinated fiscal measures (coronabonds) have still not found enough 'friends' within the EU. Meanwhile, the USD funding concerns may ease further this week, fuelling more USD weakness. JPY, EUR and CHF should reap the most benefit, while the rebound in pro-cyclical FX looks vulnerable
USD: Spectacular retreat
- The dollar’s remarkable turnaround last week owed a lot to: i) the Fed’s commitment to unlimited asset purchases and ii) some modest signs of