Market volatility remains muted, however the crossroads appear to be getting closer where questions will be asked if eased restrictions are contributing to new outbreaks of disease infections.

Both Germany and South Korea have each noted new infections of the coronavirus after lockdown restrictions were eased recently. A day or two of spikes higher in new cases will likely not set investor alarms buzzing right away, however it is a concerning signal and puts once again into question that some officials are arguably moving too fast to reopen based on what damage the fight against the coronavirus is doing to the world economy.

Should these concerns accelerate and more infections get announced from nations that have eased restrictions in recent weeks, the trends noted here regarding the Yen risk a short expiry date.

It is possible that another wave of potential risk aversion leads to weakness in stock markets, and could put on the table increases in USD, JPY and Gold as a result of improved safe haven demand.

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