The recovery in equity markets has stalled along with new evidence of accelerating coronavirus spreading. There is a saying in the market: “when the US is coughing, the world has a fever”.
Market dynamics and economic cycles have repeatedly confirmed the validity of this observation. It is very alarming that the United States is now the hot spot for the spread of the disease. New data wiped out the hopes for stabilization of the situation as the total number in the US is approaching 190k with an increase of +26.4k over the last day.
This data wiped out the stock market’s optimism. The recent bounce in stocks has again attracted sellers among those who do not believe in the V-shaped recovery. Indeed, it is hard to find in the sustainability of the rebound when medics say “we are still climbing the mountain”.
Our currencies as indicators of market sentiment stepped down from recent extremums, indicating that there is still…