The Dollar Index is rising while risk-related assets are on the backfoot during early Monday trading. The week is starting under the spell of risk aversion as the number of new COVID infections reached new records on both sides of the Atlantic during the weekend, heightening fears over new lockdowns and the economic devastation they cause. At the same time, in Washington, Republican and Democrat lawmakers remain unable to reach an agreement over the size and shape of a much-needed economic stimulus package. It is not surprising that as the second wave of the pandemic engulfs Europe and politicians in the United States continue to squabble, investors look for the comfort of safe haven assets like the dollar.
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