Market Briefing: Risk appetite worsens as holiday-thinned trading week begins
A sense of caution has settled over currency markets this morning as hopes for a recovery in the Chinese economy fade – and as participants brace for a liquidity-thinned week in which accidents can have bigger-than-normal consequences. The dollar is up against most of its risk-sensitive rivals after the number of coronavirus cases in China continued to climb, forcing several cities back into lockdown, and demolishing the idea that consumer demand would suddenly spring back to life. This comes even as markets have become increasingly convinced that US inflation is rolling over against a still-robust economic backdrop – bringing the...