Investors are no longer focused on the health of President Donald Trump. Well, attention was redirected to fiscal stimulus. Since legislators seem to be closer to approving them, therefore the dollar fell in the Forex market.
News of Trump’s COVID-19 positive shook markets, including the Forex market.
Therefore, a few days after this news, the American president seems to be fine. So traders returned their interest to the future of the American economy.
The dollar weakens due to renewed positive sentiment in the market
The dollar falls in the Forex market, yes, but it has not yet lost its role as a safe haven asset. And while the dollar has become an unstable asset for much of the quarantine, it remains a viable option for traders.
In this way, with the clear optimism of Washington lawmakers to pass this long-awaited fiscal stimulus package, traders have focused their operations on the riskiest currencies. This as the appetite for risk improved.
It is worth mentioning that these new economic stimuli will focus on mitigating the economic impact of the coronavirus in the United States.
In turn, the doubt and uncertainty that grew in the markets due to Trump’s announcement about his positive diagnosis for COVID-19, has been greatly mitigated.
However, some analysts still do not feel confident and believe that this state of doubt will last for a while longer.
In addition to this, after the tweet made by President Trump less than 1 hour ago, where he encourages Americans not to fear the coronavirus, doubts about the future of the presidential elections increased.
Dollar price to date
At the time of writing, the dollar is trading at 1.1785 with the euro with the European currency gaining 0.57%. This being the highest level of the euro since September 21. This according to SimpleFX data.
In the case of the dollar index, at the time of writing this article, it is trading at 93.48 points, falling to 0.45%.
Finally, although this news of the possible fiscal stimulus has improved the feeling of improvement of the traders regarding the future performance of the US economy, the November elections still present a focus of doubt in the Forex market.
Sources of truthful information
All the information compiled in this article was obtained as an original source created by our EnQuéInvertir editors.
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