New virus strain and the outlook for risky assets and the dollar

The imposition of tighter restrictions on activity in the UK following the rapid growth of a new and faster-spreading strand of coronavirus and the subsequent decision by many countries to halt travel to the UK have caused risky assets to pull back and the US dollar to strengthen today. But while the near-term threats may have risen, we are sticking to our view that risky assets will gain further ground and that the US dollar will continue to depreciate next year.