Will the Dollar sink or swim? as all eyes look towards Trump’s Health
The dollar continued to hold tight ranges against other currencies on Monday as investors awaited some clarity on the health of the U.S. President Donald Trump after he tested positive for the coronavirus, sending markets into safe-haven assets.
With only weeks before the November Third election, Trump was flown to hospital for treatment for the coronavirus on Friday, adding yet more uncertainty and market volatility as Trump’s re-election campaign seeks to fight off Democratic challenger Joe Biden.
Doctors treating Trump for the Coronavirus told reporters on Sunday they are monitoring the condition of his lungs after he received supplemental oxygen, hours before Trump surprised supporters outside the hospital by riding past in a motorcade.
The news came the day after contradictory messages from the White House caused widespread confusion about the president’s condition.
The dollar index was little changed at 93.789, while traders adjusted their positions in safe-harbour currencies, while against the safe-haven Japanese yen, the dollar rose 0.2% to 105.515 yen , after making its sharpest fall in more than a month to reach a one-week low of 104.95 on Friday, meanwhile, sterling investors awaited news from final round of Brexit trade negotiations as the expiry of the transition period at the end of December approached as British Prime Minister Boris Johnson and the head of the EU’s executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up negotiations on a post-Brexit deal.
Johnson said on Sunday while he does not want the transition period to end without a new trade deal, he believes that Britain could live with such an outcome.
The British pound last stood at $1.2942 while the euro changed hands at $1.1723.
Investors also await the upcoming vice president presidential debate on Wednesday with Expectations that the U.S. Congress will pass a stimulus package to support the pandemic-stricken economy remain low ahead of the presidential election in November.
U.S. House Speaker Nancy Pelosi on Sunday said progress was being made on coronavirus relief legislation but had earlier flagged key areas of disagreement.
The focus in markets this week shifts to central bank events and any clues they offer about the health of the global economy as the Reserve Bank of Australia holds its policy meeting on Tuesday while the Federal Reserve and the European Central Bank will release the minutes of their September meetings.
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