The Week Ahead: Trying to look through the Fog

Foreign Exchange: The Week Ahead
Trying to look through the Fog
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David Atkinson
David Atkinson
Foreign Exchange Sales Manager
For this look at the Week Ahead, it almost makes no sense to list off the economic releases and thoughts over the next couple of weeks for currency rates.  Short-term everything will be reacting to the evolution of the spread of COVID 19, and that is still an evolving issue.  So instead of putting out something for the next couple of weeks, here are just a few brief thoughts that have been discussed in the markets.

First, the real activity in fighting the virus seems to have moved from Asia to the US and Europe.  Keep in mind though that Asia fought this for a good couple of months so that could be the situation here.  Again, it depends on how this develops.

Secondly, once we DO get through it, how quickly will we get back to reasonably normal market conditions?  My personal view is that once we see that we have moved through this, there will be a sharp correction to the upside for equities and bond yields.  I repeat what we heard from City National Rochdale’s Matt Peron this week when he was on CNBC.  In previous crises like this, markets were back up a year later, so the lesson is to not panic and realize this will pass like all before it.

Finally, since these developments are fast and furious, please look for our daily morning commentaries. 

Have a great week everybody.
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