FXStreet reports that according to Jeffrey Kleintop, Managing Director and Chief Global Investment Strategist at Charles Schwab, until the COVID-19 case count gets back under control, the yen may strengthen.

“In the UK, the bond yield curve has moved inversely with the daily number of new cases in the UK, which are currently back on the rise.”

“In Japan, officials have declared a state of emergency in Tokyo and banned spectators at the Olympics in response to the latest rise in cases. We have seen moves in the yen align with new Japanese case counts. Until the COVID-19 case count gets back under control, the yen may strengthen, the UK yield curve may flatten and defensive lockdown-era leaders in the stock market may continue to outperform.”