News

QCAM Monthly November 2020 >> What to make of it?

  • 09.11.2020
  • FX Monthly

QCAM Insight

The outcome of the US election was again a surprise as the “Blue Wave” was not as strong as expected. Still, markets have responded favorably, hoping that a more centrist government may emerge. The USD has weakened in response. Fundamentally, we remain USD bearish, yet prevailing uncertainties including the new surge in Covid-19 cases could swing sentiment either way in the short-term.

Economy and Interest Rates

Global economic activity recovered strongly in the third quarter 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 a new round of Corona infections is undermining mobility and activity, especially in Europe.

FX Markets

Currency markets were largely range-bound in October and running into the US election. The main exception was the TRY, which fell nearly 10%. Among major currencies, the SEK was one of the best performers, while the CNY stood out among emerging market currencies.

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 November 2020

Follow-Up results

This is next in your query
QCAM Monthly January 2021 - Reflation and its risks

The deployment of Corona vaccines is widely expected to reflate the global economy in 2021. The big ...» more

QCAM Monthly December 2020 >> Taking a first...

The business cycle is an important exchange rate driver. At QCAM we have been using business surveys...» more

QCAM FX BIAS - our innovative approach to det...

QCAM FX BIAS - our innovative approach to detect currency trends at an early stage utilizing busines...» more