QCAM Monthly October 2020 – Correction yet no trend change

  • 12.10.2020
  • FX Monthly

QCAM Insight

The USD rebounded in September as risk aversion increased and Corona cases in Europe surged. Uncertainty is likely to dominate at least until the US election. Yet, the fundamental case for more USD weakness remains in place.

Economy and Interest Rates

Global economic activity recovered strongly in the third quarter. Most growth forecast were again revised to the upside but momentum is now fading as the recovery is moving from the re-opening rebound to a second more cyclical phase, which is still marked by significant corporate balance sheet and labor market distortions, while the course of the Corona pandemic remains an uncertainty.

FX Markets

The USD rebound in September was broad-based. Risk-sensitive currencies like the GBP fell the most, but the JPY held up well. Higher risk aversion was negative for Emerging Markets with vulnerable currencies like the TRY falling the most.

FX Analytics

Going into more detail: Based on our proprietary analytical framework to take scalable exchange rate positions we are taking a close look on individual currency pairs.

Download: QCAM MONTHLY October 2020

Follow-Up results

This is next in your query
QCAM Monthly June 2021 >> The new theme on the block

The USD declined further in May as vaccination and recovery momentum increased in other economies....» mehr

QCAM Monthly May 2021 >> Mixed picture with e...

The USD fell back in April as the rise in US interest rates faded. No strong trend has yet emerged a...» mehr

QCAM Monthly April 2021>> Ides of March or April weather?

The USD strengthened in March on the back of improved economic sentiment and rising bond yields. The...» mehr

QCAM Monthly March 2021 >> A “tantrum” fo...

News over the last month were on balance growth friendly and lifted risky assets but inflation conce...» mehr