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Trump Plays Down Virus Fear in Effort to Steady Forex Market

Updated on
  • Trump Confident that US is Prepared to Handle Coronavirus
  • VP Pence to Lead Outbreak Response Operation
  • Markets Retreat in the Wake of Presidential Address

US President Donald Trump projected an image of strong confidence today as he addressed the nation on the ongoing coronavirus epidemic. The outbreak has been reaching around the world causing panic in many regions and with it, a rollercoaster time for global financial and forex markets. The address came today as the 60th US case was confirmed as the first infection to occur from within the United States itself.

Positive Words and Outlook from the President

“We are very, very ready for this”, was the line indicative of the President's tone and mood today as he tried to give the markets a much needed boost. Although the USD remains strong as a safe-haven currency for many, almost all other markets outside the forex market have been embattled in recent days.

Treasury yields are hitting new, previously unseen record lows and the stock and indices markets are on a continual downward trend. In a statement that was surely an effort to reverse the sliding economic situation, President Trump also remarked that work was well underway on a vaccine and it was “rapidly developing”. This statement was later challenged by the Director of the National Institute of Allergy and Infectious Diseases who said that such a vaccine may take at least 12-18 months to develop.

Pence Out Front in Virus Fight

Appointed by Trump to coordinate the US government response to the issue, VP Mike Pence also tried his best to strike a positive note. Both men seem confident and rebuffed the suggestion that spread of the virus in the States was inevitable. Meanwhile in New York, 27 people tested negative for the virus.

All of this did not stop Microsoft today from announcing that they would not meet their revenue projections for the quarter. They are the second huge company to make such an announcement in recent weeks with Apple also falling short of the mark. Microsoft shares fell more than 1% in response to the announcement. This is similar to the resulting fallout from the Apple announcement as two members of the trillion dollar club also continue to feel the pressure of the current climate.

Market Fails to Respond to Vote of Confidence

Despite the efforts of the US leadership, their positive response has so far today, failed to garner a turnaround from the market. Asian markets were down again today in what has been a week of consecutive falls both there and around the world.

At the time of writing the EUR/USD was still clinging on to what has become its benchmark for the week at 1.09 while gold prices also remained steady. In forex markets closer to home though, the USD/CAD hit a high point at 1.33 amid the continuing fall in oil prices with global demand suffering as supply chains and production remain greatly disrupted.

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.