The Dollar Index continues to decline with the accumulated losses for the week now exceeding 1.1%, while the Euro climbed to $1.16 for the first time since October 2018. Risk-on endures, despite the apprehension generated by the escalation in tensions between China and the USA.
The closure by the American authorities of the Chinese consulate in Houston is seen as an escalation in the latent conflict between the world’s two largest economies, which many analysts believe will invite retaliation from Beijing. However, for the time being, investors appear to be focused on the positivity of the last few days, following the approval of the EU recovery fund, good progress being made in the quest for a COVID vaccine and the latest survey of German consumer confidence that surprised to the upside.
