A risk-off mood has taken over markets as coronavirus cases surge in Europe and the US. Fiscal stimulus talks seem on the brink of collapse in Washington and also weighs on the mood. Next week’s American elections Brexit talks are eyed.
Coronavirus in Europe: Several European countries reported record COVID-19 infections and growing pressure on hospitals. Among the most significant developments are a caseload of over 50,000 in France and a new state of emergency in Spain. EUR/USD has fallen off the highs around 1.1850. The German IFO Business Climate and Bundesbank’s monthly report are eyed.
US fiscal stimulus: Republicans and Democrats seem to have reached the limits progress was made last week. Politicians began the blame game, apparently trying to score points ahead of the elections. The GOP-controlled Senate is focused on confirming Amy Coney Barret to the Supreme Court.
Elections: The weekend has been thin on post-presidential debate polls, but so far, challenger Joe Biden remains in the lead against President Donald Trump. An inflow of surveys is likely on Monday and Tuesday. Investors are trying to gauge the chances of a “blue wave” – a victory for Democrats in the battle for the White House and Congress, allowing for a generous relief package.
