Risk Assets Take A Plunge, on More Restrictions in Germany
NZD/USD has turned bearish today after tighter coronavirus restrictions from Munich
Skerdian Meta•Monday, September 21, 2020•1 min read
Germany kept the coronavirus restrictions light during the lockdowns in March and April, which was helpful for the economy, but it seems like they are tightening them again now. Munich has announced that private gatherings will be restricted to no more than 5 persons or two households, including eating out at restaurants.
This is a bit of a big change, as there is currently no limit for private gatherings at home, and those meeting in public spaces can only do so in a group of up to 10 persons. The report also says that masks might be required in open public areas. Wearing of masks is still compulsory in enclosed public spaces, such as cinemas, theaters and concert halls, as has been the case since April.
In any case, look out for more restrictions, should they come about, as that will have an impact on consumer behaviour and consumption activity in general. As for the immediate impact, it is clearly visible in risk assets today. Travel stocks are among the hardest hit in European trading today, and that exemplifies the fears surrounding the fact that the virus situation has been getting worse in the region over the past few weeks. Most risk assets have turned bearish, with the NZD/USD losing nearly 100 pips.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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