FXStreet reports that according to the latest Global Research report from the Bank of American (BofA), the US dollar (USD) and Japanese yen (JPY) are likely to witness further buying in the fourth quarter (Q4) due to their safe-haven nature. The underlying reason spotted is the global economic weakness due to the coronavirus (COVID-19) resurgence.

"The strong rebound in 3Q was temporary, driven by base effects from the 2Q lockdown."

"Indeed, global data have already started weakening, as the base effects are behind. We expect reintroduction of COVID-19 measures in most countries, and particularly in Europe, will also contribute to a weak 4Q."

"We note the US economy continues to perform better than most of the rest of G10."