US Dollar Gains Even as Trump Warns About Escalation of Coronavirus Crisis
Early on Thursday, the US dollar continues to trade strong against other leading currencies as its safe haven appeal remained in focus among investors seeking more liquidity amid reigning uncertainties in global markets. At the time of writing, the US dollar index is trading around 99.61.
The US dollar keeps making gains against its major peers except the Japanese yen as markets worry about the economic impact of the escalating coronavirus crisis worldwide. With several countries in lockdown mode, global trade and economic growth are expected to be severely affected for a considerable period of time, raising the likelihood of recession.
Fears about the coronavirus pandemic compounded after US President Donald Trump’s warning that the situation in the country is likely to worsen in the coming weeks, even after the US overtook other countries to have the maximum number of cases and the death toll continues to climb higher. Trump had cautioned that the worst was yet to come and the situation could deteriorate severely over the next couple of weeks despite social distancing measures across the country.
Even though recent economic data releases have gone on to highlight the weakness in the US economy, the US dollar is strengthening as markets consider it to be one of the safest, most liquid instruments to invest in. Looking ahead, the dollar could see major moves on the release of the latest jobless claims data and the NFP report which would offer more insight into the impact of the pandemic on US jobs.
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