Become a client

Currency Market Analysis

Oct 05, 2020 | Currency Market Analysis

Global Themes

Shares hit, USD gains, as Trump’s COVID case adds to woes

The US dollar was stronger on Friday as news about US President Donald Trump’s positive COVID-19 test hit financial markets.

The US’s Dow Jones fell more than 500 points in pre-market trading before later recovering as the diagnosis added to the uncertainty around the US presidential election, due on 3 November.

A weaker than expected US jobs report, with 661k extra jobs versus the 900k forecast, also weighed on sentiment.

The Dow ended down 134 points or 0.5%.

USD spike

The USDCNH initially spiked on the news of the US President’s positive diagnosis, but later eased from early gained to end 0.1% higher.

The euro lost ground following a lower-than-expected inflation reading on Friday.

The British pound was stronger after the EU said it hoped to be able to achieve a new trade deal by the end of October.

RBA in focus

The early focus this week will be the Reserve Bank of Australia meeting tomorrow.

The RBA is widely expected to cut interest rates from 0.25% to 0.10%. The RBA might also introduce a new money-printing program.

Otherwise, key central bank speeches will be closely watched, with officials from the European Central Bank and US Federal Reserve due to speak on Tuesday night.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.