Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Yen jumps after Trump catches COVID-19, rattles financial markets

ForexOct 02, 2020 04:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. George Washington is seen with printed medical mask on the one Dollar banknotes in this illustration taken 2/2

By Tom Westbrook

SINGAPORE (Reuters) - The dollar and yen rose on Friday after U.S. President Donald Trump's positive test for COVID-19 spooked investors, just a month out from November's presidential election.

Trump said on Twitter that he and his wife Melania had COVID-19 and would begin quarantine and recovery immediately.

The yen made its sharpest gain in more than a month to reach a one-week high of 104.95 per dollar after the Tweet and the greenback rose as much as 0.7% on the risk-sensitive Australian dollar.

Both then pulled back as traders puzzled over how it might affect the election, underscoring market uncertainty around the implications for the November vote.

"The president of the United States has got a disease which kills people. People are de-risking because of that," said Chris Weston, head of research at Melbourne brokerage Pepperstone.

"But we're not sure how much this changes the election. The prospect of Donald Trump surviving this is incredibly high," he said, adding that the selloff could soon reverse.

Losses in the euro (EUR=) were more modest and it was last down 0.2% at $1.172. The yen pulled back to 105.16 per dollar.

Sterling advanced after Downing Street announced British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen would meet on Saturday to discuss next steps in acrimonious Brexit talks.It was last 0.2% higher at $1.2913 .

The Aussie recovered about half its losses by the end of the Asia session and was last down 0.2% at $0.7165. The New Zealand dollar was down 0.1% at $0.6645.

Both lost half a percent against the yen (AUDJPY=) (NZDJPY=) but lifted from session lows. U.S. stock futures also pared some losses, though commodities remained under pressure.

Analysts said the next moves would depend on Trump's health, how far the virus has spread amongst top U.S. officials and politicians and on voters' response.

"As far as we know Trump is not gravely ill. It is possible that by the time we reach New York trading that markets will have calmed down," said Yako Sero, strategist at Sumitomo Mitsui (NYSE:SMFG) Trust Bank in Tokyo.

"However, this does damage Trump's ability to campaign and time is running out before the election."

Against a basket of currencies the dollar tacked on 0.1%, but remains down 0.8% for the week - its softest weekly performance since late August - as hopes for U.S. stimulus have had investors in the mood for riskier bets.

JITTERS

Still, even before Trump's diagnosis, investors had begun to fret that the hoped-for U.S. fiscal stimulus package had stalled in Washington, and were nervously awaiting U.S. jobs data due at 1230 GMT.

With House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin at odds over what Pelosi described as differences over dollars and values, doubts are now creeping in over whether a deal can be done before the election.

The recovery is also slowing down, and economists expect data due at 1230 GMT to show U.S. hiring increased by 850,000 jobs in September, a smaller gain than August.

Concerns are also growing that coronavirus infection rates are climbing in Europe and the United States.

Madrid will become the first European capital to go back into lockdown in coming days to fight a steep surge in cases.

A record increase in new cases in Wisconsin on Thursday fanned fears of hospitals there being overwhelmed.

"With the President confirmed being positive, this is a reminder to the market that the virus situation is still a problem, "said Bank of Singapore FX analyst Moh Siong Sim.

"Other than that, I'm not sure what it means for the market."

Yen jumps after Trump catches COVID-19, rattles financial markets
 

Related Articles

Taliban expand economic team as Afghan crisis deepens
Taliban expand economic team as Afghan crisis deepens By Reuters - Sep 21, 2021

(Reuters) - Afghanistan's Taliban government bolstered its economic team on Tuesday, naming a commerce minister and two deputies as the group tries to revive a financial system in...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Frank Mostertman
Frank Mostertman Oct 02, 2020 1:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pence the new nomine...
Jo Pa
Jo Pa Oct 02, 2020 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A virus so dangerous, you must be tested to even know you have it.
Serena Chin
Serena Chin Oct 02, 2020 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Goes to show how bogus covid tests are and also how lucrative$
Robbie Winckelmann
Robbie Winckelmann Oct 02, 2020 1:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's called an incubation period.
Kaveh Sun
Kaveh Sun Oct 02, 2020 1:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Biden gets it too, then will congress delay the election?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email