Data And The Virus May Determine The Magnitude Of The Dollar’s Bounce

There is no reason to expect the investment climate is going to change next week. The key drivers remain the same. The resurgence being seen in the virus is posing a speed bump in the re-opening and recovery process. The work of monetary and fiscal policy is not over.

The low real and nominal interest rates are encouraging risk-taking by savers, and this means equities, commodities, and emerging markets. Gold, which is often perceived as a safe haven, appears more driven by the low nominal and real interest rates than fear.

In this environment, the dollar thas fallen out of favor. There is a run against the dollar, the likes of which have not been seen for several years. Sterling’s record-long ten session-advance was halted ahead of the weekend by late profit-taking. The euro has rallied for six consecutive weeks. The dollar fell to 20-week lows against the yen, which was the second-worst performing major currency in July with about a 2% gain, ahead of the Canadian dollar’s 1.2% rise. Read more…


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In this episode of Yahoo Finance Presents U.S. Surgeon General Dr. Jerome Adams, talks to Yahoo Finance senior reporter Anjalee Khemlani about the ongoing coronavirus pandemic, wearing masks, and the disparity of infection among minorities.

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