The surge in new cases of coronavirus in the US has appeared in 25 states with Florida, Washington State, Arizona, and Texas as standouts. While some of these states have slowed opening schedules or have rolled back some measures, others are content to ride out the spread. Open bars and some beaches will be closed in Florida for the July 4th weekend. This resurgence in the US has injected some doubt into the economic recovery that has been underscored by strong payrolls numbers and stronger retail sales – people are spending money and jobs are being created.
The V-shaped recovery is – for now – on track. This most recent surge in new cases has triggered a safe-haven trade, investors buying USDs and it is rising. Cases rose in the US by at least 39,818 and the US dollar impact is there, people continue to purchase the safe-haven dollar at an alarming pace. Some are now saying the worst is behind us and others are saying that the next wave, the second wave, could be damaging to global economies.