Financial specialists at HSBC consider different potential situations that could play out and what these may mean for G10 monetary forms. A U-formed recuperation is the most probable cause.

Key statements

“U-shape: The rise neglects to show up right away. Forex is driven by the overall strength of government funds as business sectors search for the arrangement to convey the rise. Champs: JPY, AUD, NZD, USD, Losers: CAD,EUR, GBP.”

“L-shape: The worldwide economy neglects to bounce back much after the facilitating of COVID-19 control measures. Forex is driven by the general strength of outside positions. Champs: JPY, Gold, CHF, Losers: NZD, GBP, AUD.”

“!-shape: An all-inclusive downturn in development, maybe provoked by the second influx of regulatory measures. A ‘Hazard off’ disposition would result. Champs: Gold, USD, JPY, Losers: CAD, AUD, NZD.”

“Angular shape: A sound and sensible quick bounce back in development. ‘Hazard on-Risk off’ is as yet predominant, as past Forex washouts become the champs. Champs: AUD, CAD, NZD, Losers: Gold, JPY, CHF, USD.”