- Equity markets trended lower in the Asian session with US fiscal stimulus developments in focus.
- Tightening lockdown restrictions in several European countries could dampen Euro demand versus safe haven peers.
- EUR/JPY and EUR/USD point higher carving out bullish continuation patterns.
Equity markets trended lower in the Asian session as investors digested US stimulus developments and soaring covid cases.
Australia’s ASX 200 dipped0.43% while Japan’s Nikkei 225 edged 0.17% lower.
In FX markets, the risk sensitive Norwegian Krone and Canadian Dollar outperformed, while the safe haven Japanese Yen and US Dollar trended lower.
Looking ahead, inflation data out of France and Italy headline the economic docket alongside US industrial production figures for November.
EUR SHRUGS OFF TIGHTER COVID-19 RESTRICTIONS
The Euro looks set to continue rising versus the safe haven Japanese Yen and US Dollar, even though covid restrictions are tightening in several European countries.
Germany will begin a hard, national lockdown on Wednesday after the lockdown lite in November failed to bring case numbers significantly lower.
Italy could also see tighter restrictions as the death toll climbs and it records the highest number of Covid-19 deaths. The Netherlands also announced a strict 5-week lockdown on Monday. The EU is expected to approve the emergency use of several covid vaccines “in the coming weeks”, allowing investors shrug off the latest covid developments.