Financial markets caught between hopes of stronger fiscal stimulus in the US and prolonged lockdown in Europe

Markets are pausing, weighing prospects of stronger fiscal stimulus in the US against the acceleration of the spread of the pandemic, especially in Europe, where lockdown measures are being reinforced and extended. Some Fed officials also calmed down talks about a reduction in bond purchases as soon as this year, therefore helping to stop both the bond yields and the USD ascent. The EUR/USD is trading above 1.22. Donald Trump denied having done anything wrong last week, but should be impeached a second time.