Meanwhile in markets, the further slowdown in US Coronavirus infections hasn’t managed to turn the dollar’s fortunes. Perhaps investors realize that in the game of tag where Coronavirus hotspots migrate across the globe, the thing will come full circle at some inconvenient point in time. Last week the greenback was down half a percent against both EM and major currencies. And the bleeding hasn’t stopped this morning. Still, while the dollar is down 3.5% against the majors this month, for the month the greenback is actually flat against EM FX. In any case, the stabilization of the Coronavirus situation (discussed in greater detail further down below) and the recovery of the economy proceeding hasn’t translated to gains for USD, suggesting investors have something else to fret about. The usual suspects are of course the election and social unrest.


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