XE Market Analysis: Europe – Oct 26, 2020

The dollar is firmer against a backdrop of tumbling global stock markets as an ongoing surge in new positive tests for Covid in Europe and the U.S., and the course toward tighter restrictions, dulls the economic outlook. The U.S. and France set new records for positive tests for the coronavirus, while Spain announced a state of emergency. It should be noted (though often isn’t) that there is likely a false positive issue (many academic papers have discussed this), which may be exaggerating the true picture of Covid prevalence.