MENU Show navigation FXStreet Trading Studio CORONAVIRUS (COVID-19) NEWS Share on Twitter Share on Facebook Share on Linkedin Covid fears battle vaccine hopes, how is it moving markets? COVID-19 monetary policy: Fast easers to tighten first Danske Research Team Danske Bank A/S In this first paper in our series on the cross-country monetary aspects of the COVID-19 related economic crisis, we look at the responses of major central banks, which increased their balance sheets with large-scale open market operations and/or quantitative easing. Even though most central banks engaged in a combination of interest rate cuts and balance sheet increasing operations, the end effect varied greatly across countries. COVID-19 worries on the rise Danske Research Team Danske Bank A/S We start the week in a fairly quiet fashion on scheduled global data releases. However, in the Nordics focus will start out with Swedish October inflation and Danish Q3 GDP both to be released this morning. For details see the Nordic Macro Section below. Flaring coronavirus Naeem Aslam Avatrade Investors should keep in mind that the coronavirus is still a big factor that could likely move financial markets. Recently, coronavirus cases have been growing in the United Kingdom with a whopping 45,140 new cases, the highest number of cases in 3 months, reported on Sunday. COVID-19 monetary policy: Lender of last resort to the public Danske Research Team Danske Bank A/S In the second paper in our series on different cross-country monetary aspects of the COVID crisis, we look at the role of government liquidity management. When the crisis hit last year, debt management offices build large liquidity buffers on deposit accounts amounting to around 6-13% of GDP. Quantitative easing no longer is just about supporting bank liquidity. Now it is also about supporting public liquidity. HOW COVID-19 IMPACTS MARKETS The first case of Coronavirus (COVID-19) appeared in December 2019 in Wuhan, China. Since early 2020, this disease has spread rapidly, generating medical crises, overwhelming hospitals and prompting governments to enact lockdowns around the world. During the first months, investors responded with a sharp panic-selling response to the possible economic collapse, typical to such black-swan events. The pandemic had a wide-ranging and severe impact on financial markets, including stocks, bonds, and commodities. Governments and central banks moved to shore up the economies. It also had a substantial influence on businesses around the world. The uncertainty related to lockdown durations and economic recovery left many businesses closed and hit households hard. It also had a substantial influence on businesses around the world. The uncertainty related to lockdown durations and economic recovery left many businesses closed and hit households hard. From late 2020, vaccination efforts allowed many major economies to fully open but the Delta variant revived concerns over new restrictive measures around mid-2021. Although countries were able to avoid lockdowns, supply bottlenecks caused by the virus outbreak started to ramp up price pressures. Central banks are looking to set their policy in a way to battle inflation while keeping the growth momentum alive. LATEST CORONAVIRUS NEWS Hawks triumph, doves lose, gold bulls cry! By Arkadiusz Sieroń | 17:48 GMT US Nonfarm Payrolls November Preview: Can we agree the labor market is healing? PREMIUM By Joseph Trevisani | 15:38 GMT Are commodities fading the global economic recovery? PREMIUM By FXStreet Team | 15:27 GMT The Fed is right to stick to its tapering acceleration story By Barbara Rockefeller | 13:59 GMT What “smart money” are trying to hide from traders now? 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According to analysts at Wells Fargo, favourable views of the labor market helped to fuel gains in both the present situation and expectation measures and lifted the Consumer Confidence headline index to 113.8 from 109.8. Fed’s Daly: Pandemic pushing prices higher but impact should fade By Dhwani Mehta | OCT 11, 02:45 GMT “It’s too soon to say it’s stalling, but certainly we’re seeing the pain of Covid, and the pain of the delta variant,” “Covid is not behind us, so I don’t expect the job market to just be continuous. It is going to have these ups and downs.” US President Biden: We are in a tough stretch on covid and it could last for a while By Anil Panchal | SEP 09, 21:09 GMT "Many of us are frustrated with the roughly 80 million Americans who are not vaccinated," said US President Joe Biden while announcing details of his six-pronged strategy on Thursday night. CORONAVIRUS IN EUROPE UK’s NHS: Number of COVID-19 cases in hospital seems to be rising By Dhwani Mehta | OCT 20, 06:36 GMT ECB's Philip Lane: We don't expect Delta to be major domestic problem By Eren Sengezer | OCT 11, 12:37 GMT ECB’s Lagarde: Eurozone activity could be back at pre-pandemic levels by year-end By Matías Salord | SEP 29, 16:59 GMT Going into the post-pandemic era Nikolaos Akkizidis LegacyFX Despite the serious problems with the availability of COVID-19 vaccines, the vast majority of people in the United States and Europe will have been vaccinated by the summer, so the public health situation will be largely the same in these parts of the world. However, despite the homogenization of these areas, it remains uncertain how long it will take people and businesses to return to pre-pandemic conditions. Travel recovery, for example, will be slow. The European Union is likely to introduce quarantine-free cross-border crossings for those with vaccine passports, but restrictions on long-distance travel will remain in place for a long time to come. Border controls between the vaccinated rich world and the unvaccinated poor world are likely to become stricter, especially if new mutations of the virus continue to appear. RELATED CONTENT EDITORS' PICKS AUD/USD trading below 0.7100 as the greenback resumes advance The American dollar edged higher on Thursday, helped by upbeat local data and ahead of the US Nonfarm Payrolls report. Softening gold prices put weight on the AUD. AUD/USD News EUR/USD slides sub-1.1300 as the dollar accelerates advance EUR/USD finally broke below 1.1300, helped by encouraging US employment-related figures ahead of the November jobs report. ECB officials still holding back on tapering. EUR/USD News Gold: Pressure persists November low at risk of giving up Gold fell to a 1-month low of $1,763.33 a troy ounce, bouncing just modestly from it and currently trading around 1,767.00. The bright metal weakened the most during US trading hours, as the American dollar met some market’s favour. Gold News ETH outperforming its peers, BTC struggles and XRP bearish BTC refrains from making new highs as Tuesday’s gap-fill kills uptrend continuation. ETH outpaces its peers by barely hitting new highs. XRP price again looking for direction as investors interest wanes. Read more Cyber Monday 2021 Discounts! Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? Subscribe now! US LATEST REPORTS US Nonfarm Payrolls November Preview: Can we agree the labor market is healing? 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