Today, it was announced that US President Donald Trump and his wife tested positive for COVID-19. Following this news, the US dollar and the Japanese yen increased in value.
Now the President and First Lady of the United States are in quarantine. However, Donald Trump continues to work as usual in the White House. Earlier, President's trusted advisor Hope Hicks also tested positive for the coronavirus infection.
The US dollar Index, which measures it against a basket of six other currencies, grew by 0.1% to hit 93.797. USD/JPY fell by 0.4% to settle at 105.11, the lowest level this week.
EUR/USD fell by 0.1% to trade at 1.1732, GBP/USD decreased by 0.2% to 1.2870, and risk-sensitive AUD/USD dropped 0.3% to 0.7160 as well.
Analysts note that the situation in the market is extremely tense and unstable: Treasury yield, shares, and futures fell in price, while the US dollar, on the contrary, advanced. Investors are wary of this situation and turn to cash.
The start of cold season plays into the hands of the coronavirus, which is increasingly spreading across the United States. According to statistics, the number of infected people has increased by 4.4% weekly since September. The virus has not gone anywhere, and it is still dangerous.
Investors avoid risk as a new $ 2.2 trillion fiscal stimulus package has not yet been approved. The House of Representatives, or rather the Democrats, have approved the law. Whether the Republican-dominated Senate will approve it, remains a question.
However, the news about Donald Trump's infection had a negative impact on the European indices.
Thus, the DAX index in Germany fell by 0.8%, the CAC 40 in France decreased by 0.8%, and the British FTSE index lost 0.7%.
Danske Bank analysts are worried about how the virus will affect the president's health and his presidential campaign. There is also a risk that other members of the US government may also be infected.
Speaking of Europe, Equinor ASA shares fell by 0.5%. Many major oil companies tumbled, with BP, Royal Dutch Shell, and Repsol falling to 52-week lows. Rolls-Royce shares lost 6.8%
However, not everyone is doing badly. Renewable energy company Orsted, for example, and wind turbine maker Siemens Gamesa have reached new record highs.
Oil also fell in price. US crude oil went down by 2.4% to trade at $37.80 per barrel, while Brent collapsed by 2.7% to settle at $39.83.
Gold futures also dropped by 0.1% to $1,915.70 per ounce.
