Rebound loses pace and virus sways FX

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

State of the US Economic Recovery in Real Time

• Brisk recovery in May and June slowed from July to early September.
• Entertainment and recreation sector remains down 60% from a year ago.
• Restaurants and hotels regain some lost business during the summer.
• Healthcare spending has recovered to 10% below pre-pandemic level.

Economic Impact of Virus Drives FX

• Yuan has gained 6% against US dollar from June through late September.
• Euro’s 10% rally from March lows curbed by resurgence in virus.
• Pound’s summer surge halted by fresh virus outbreaks, Brexit.
• Coronavirus’s economic impact influences moves in currencies.