XE Market Analysis: Europe – Oct 21, 2020

The dollar is softer across the board amid a backdrop of buoyant global stock markets and declining risk premia. U.S. House speaker Pelosi said that she is hopeful that a deal on fiscal stimulus can be reached this week, while markets are also factoring in rising prospects for further central bank stimulus, especially in Europe where the trend toward increasingly draconian Covid measures is threatening a double dip recession. The prevailing upbeat mood could change in a flash.