The dollar continued to suffer yesterday and is still weak this morning, as President Trump’s plans to mitigate the risks of coronavirus disappointed the markets. The plans involve a travel ban from European mainland countries and economic steps to counter the virus. However, his address from the Oval Office lacked detail on medical measures, beyond assurances that “the virus has no chance against us”.
There are also increasing expectations of another interest rate cut from the Federal Reserve. Coronavirus news continues to dominate, and it could be said that the US looks increasingly vulnerable to the outbreak.
Hopes for fiscal stimulus have waned slightly as US Treasury Secretary, Steven Mnuchin, said that a robust economic stimulus won’t be able to pass Congress quickly. Earlier in the week, President Trump suggested that there cut be a payroll tax cut and assistance for the struggling airline and cruise ship industries. However, nothing has come to fruition yet.
Inflation rate figures came in better than expected yesterday, however they failed to lift the greenback.
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