Lockdown fears return to Europe hitting regional currencies: The Global Markets FX Week Ahead Podcast

Market participants are becoming more fearful of downside risks to growth in Europe. The latest COVID wave has already prompted policymakers to re-tighten restrictions. It joins the energy price shock, geopolitical tensions with Russia and the developing currency crisis in Turkey on the list of worries for European investors. In contrast, the US economy has regained upward momentum and the Fed’s communication is turning more hawkish.

Lee Hardman, Currency Analyst, and Michael Owen, MUFG’s Head of Global Client desk for EMEA in London, discuss the market implications of last week's events, adding a long USD/CZK trade idea to reflect these risks.

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