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Forex Market Struggles After Trump Positive Coronavirus Test

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Forex Market Struggles After Trump Positive Coronavirus Test
  • President and First Lady Both Test Positive
  • Result Likely to Trigger Move Toward Dollar
  • Stocks Braced for Significant Drop at Open

President Trump has tonight announced that both he, and First Lady Melania trump have tested positive for coronavirus. The pair are now set to quarantine in the White House. The Presidents physician has released a statement to say that they are “both well at this time”. In an immediate response from the forex market, the Euro and Pound have both dipped back. The reverberations of this news are also likely to have an impact when the morning comes on Wall Street. Dow Jones futures are already pointed to a bleak opening bell.

President and First Lady to Quarantine

The President, who, at 74 is already considered to be in the high-risk group for COVID-19, along with his wife, have now already begun there quarantine period in the White House. Trump himself announced the positive test via Twitter tonight saying “Tonight @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!” The Presidents physician also noted that he expected minimal disruption to the Presidents regular duties.

The positive tests come hot on the heels of a positive test from one of the closest advisors to the President, Hope Hicks also testing positive for the virus. The schedule ahead is not clouded in uncertainty with the next Presidential debate due to take place on October 15th in Florida. It also remains to be seen if any other key administration members such as Vice President Mike Pence have also tested positive.

Euro Immediately Weakens on News

Both the Euro and Pound had already been struggling on the home front, with a disappointing data release from Europe in regard to PMIs, and the ongoing struggles of Sterling against the stalling Brexit trade deal. Both had taken a positive turn only yesterday though as the US stock market seemed to be rallying positively.

This move has now been turned on its head as the news is likely to see a strong push from those in forex trading, back toward the safety of the US Dollar. This is the move that forex brokers always expect during times of uncertainty such as this. The Euro immediately reflected this movement, falling quickly below the 1.17 mark where it had been holding steady.

Stock Futures Down Sharply

The forex market is far from the only casualty in this unexpected news. Dow Jones futures plunged more than 400 points in a short period of time after the news was announced. This is a blow to the market which had moved positively on Thursday following another drop in jobless claims, and expectations of a new stimulus bill.

The full impact of the news remains to be seen, though such a large and sudden development is likely to have at least a temporary impact on the markets while traders wait poised for more news with the September jobs report, and nonfarm payroll numbers also set to be released this morning.

 

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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