TD Research sees the USD mixed and flags a 2-way risks across markets into year-end.
" The two-way risk across markets remains elevated, reflecting the string of event risks over the coming weeks. That connects the US elections, the general rise of infection curves (and associated lockdowns), and the idiosyncratic factors like the recent moves by the PBOC. The result is a pullback in equities but a broadly mixed USD," TD notes.
"We expect these two-way risks to remain elevated into yearend. Markets will remain sensitive to COVID vaccine headlines, given part of the reflation trade rests on some return to normalcy next year," TD adds.