FXStreet reports that Thomas Harr, PhD, Global Head of FI&C Research at Danske Bank, analyzes the depth of the current recession, the chance that it will be short-lived and implications for markets.

"This week, it has become evident that the recession is deep."

"The recession is extraordinarily deep and much deeper than the worst months in the global financial crisis in 2008-09. However, there is still a chance that the recession will be short-lived."

"I still think that policymakers in Europe and the US could do more to contain the virus outbreak in terms of testing and contact tracing."

"Near-term, I expect the USD will strengthen further due to elevated market stress and USD shortage. There will be a point where economic expectations stabilise and market stress eases, at which point the USD will fall, but we are not there yet."