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Markets fall as Trump tests positive

Today’s news headlines:

‘Donald Trump and First Lady test positive for Covid-19’. Yesterday, both Donald and Melania Trump tested positive for Covid-19 after Hope Hicks, one of the President’s closest aides, earlier tested positive for the virus. They are retreating into quarantine barely a month before the first US Presidential election. The news boosted safe-haven currencies like the US Dollar and Japanese Yen, while denting equities and futures globally. (Financial Times)

‘Brussels launches legal action against UK over Brexit deal breach’. The UK is facing being hauled in front of the European Court of Justice after Brussels confirmed it's suing the UK over plans to violate international law pertaining to the Brexit withdrawal agreement. Ursula von der Leyen, the European Commission President, has given Boris Johnson’s government formal notice of the first stage of EU infringement proceedings. Meanwhile, today will be the decisive day as to whether the UK and EU can enter the final stage of talks to reach a trade deal, which might lead to further swings in the Pound. (Financial Times)

Today's events, rates, and data 

  • S&P 500 futures are between 1-2% lower on the Trump coronavirus story as risky assets, in general, pulled back on the news, while the Dollar and Yen jumped to their highest levels of the week. Watch for further volatility as the day progresses based on UK-EU headlines and US Non-Farm Payrolls data, this afternoon.

Today's events

Eurozone Spanish Unemployment Change: -26.3k vs 29.8k previously
US Non-Farm Employment Change: 1.30pm
US Average Hourly Earnings: 1.30pm
US Unemployment Rate: 1.30pm
US Revised University of Michigan Consumer Sentiment: 3.00pm

Interbank rates:

GBP/USD: 1.2865
GBP/EUR: 1.0965
EUR/USD: 1.1735
USD/CAD: 1.3310