Rates as of 0500 GMT
Theres a saying in Japanese, A womans heart is as changeable as the autumn sky. Putting aside the obvious question what about mens hearts? we could apply that same adage to the financial markets. Yesterday the dollar was in the doldrums today its on top.
After hitting a record high on Friday, stocks in Europe plunged yesterday, with the Euro Stoxx 50 down 2 on the day for its worst day so far this year.
The fall is being attributed to the worsening global virus situation, which has caused a major riskoff mood. Im not sure I buy that rationale the virus situation hasnt turned on a dime so why should the markets? still, its as good an explanation I can see for movements that recently dont seem to have a strong, identifiable fundamental underpinning.
Despite the surge of vaccinations around the world, new cases of the virus are hitting record levels every day. Note the surge in India grey section. Turkey and Argentina are also big contributors to the rest of the world.
The number of new cases every day is up 65 in just one month! Thats a big change from February and early March, when the number of new cases was falling on a mom basis.
The pace of vaccination is very uneven in some countries, notably the US, all adults are eligible to get the jab, while in other countries, notably the developing world, no vaccines are available for anyone. This difference will affect the rate at which countries achieve herd immunity and can…