Coronavirus: Easing lockdowns and restarting the economies are essential for currencies

The battle against coronavirus is nearing the end of the beginning, and it is time to look at exit strategies. Yohay Elam, an analyst at FXStreet, examines the implications for different currencies.

Key quotes

“Eurozone countries have suffered most of the global deaths, and every improvement in these three fields may fasten the opening up of the economy and boost the euro.” 

“The UK is behind on several factors, but the impact will likely be straightforward for the pound.”

“The US dollar, and especially the Japanese yen, are safe-haven currencies and have different behavior. They may lose ground in response to the good news.” 

“If the US eases nears easing restrictions, investors may abandon the safety of the greenback and move to currencies deemed riskier. Conversely, any setback in the US may lead to traders clinging onto the dollar.”