ForexLive Asia FX news wrap: US coronavirus – a hard rain’s a-gonna fall

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Monday 16 November 2020 

Before the wrap up of today's events a heads-up to what is likely to be ahead for the US on COVID-19. Cases continue to climb at an increasing rate (expect the next couple of days to be the usual weekend under-count mirage but by mid-week the numbers will be horrendous again), as do, inexorably, hospitalisations. There is a just under a two-week gap between rising cases and rising hospitalisations. The new 1.5 million cases from the last two weeks are about to overwhelm the US health system. Oklahoma reported their ICU capacity is now occupied fully, 100%. Other states will follow in the coming days. For the week ahead, this week, another million cases will be added. The following week will add another million (and more, most likely, given the accelerating trend).

While treatment has improved since the first wave, resulting in a lower death rate, this assumes a case can be admitted to hospital. And that there are healthcare professionals available to treat the ill. Deaths follow hospitalisations by about another two weeks. There is a jam-packed pipeline. The week's ahead look ominous.

For the economy there will be further impacts coming soon. Michigan announced today a tightening of restrictions, other states will follow in the hours and days ahead.

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OK, back to the wrap-up. Weekend news saw the usual Brexit-related headlines with domestic UK politics thrown into the mix. Hard-line Brexiteer Dominic Cumming was dumped by UK PM Johnson which may indicate some softening from Johnson is to come. Trade talks are still bogged down and talk is they'll go on longer than was planned. A (likely minor) complication is Johnson is in isolation having had contact with a positive person (a coronavirus-positive person that is).

Also on trade, Asia Pacific nations signed RCEP, a comprehensive FTA - it covers China, Japan, South Korea, Australia, New Zealand and many others (15 nations in total). Despite its Pacific coast, the US is not included.

On the data front today we got reasonably good 'activity' data from China for October.

For markets it was a positive sentiment session, US Equity index futures rallied on the reopen for the week and the USD gave back some ground on the upbeat mood. EUR, GBP, AUD, NZD all gained with havens USD, JPY and CHF lagging. 


Forex news for Asia tradingfor Monday 16November 2020 

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