March 29, 2024

Rising coronavirus cases delay economic growth

LQDFX Forex news Blog | Rising coronavirus cases delay economic growth

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Federal Reserve officials expressed concern that rising coronavirus cases could harm economic growth just as stimulus measures start to expire.

The United States has the highest known numbers of coronavirus cases and deaths in the world. The number of confirmed cases surpassed 3 million on Tuesday, affecting nearly one of every 100 Americans. California reported more than 10,000 coronavirus cases on Tuesday, a record rise for a single day.

The surge has forced authorities to scale back on reopening plans. Further, the Fed officials expressed concern that rising coronavirus cases threatens to squeeze consumer spending and job gains.

The Trump administration has begun formally withdrawing the US from the WHO after months of criticism against the international body. Trump has repeatedly accused the organization of aiding China. The US President accused WHO for allegedly covering up the origins of the coronavirus and allowing its spread.

Stakeholders have advised President Trump not to withdraw from the organization, especially during a raging pandemic. US withdrawal could also interfere with clinical trials essential for developing vaccines and tracing of the virus spread globally.

Further, US-China tensions have been growing. China on Wednesday said it will restrict visas for U.S. officials for what it called “egregious” behavior over Tibet. This move came as an answer to Pompeo’s announcement a day earlier.

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Forex – Rising coronavirus cases delay economic growth

Traders consider concerns it will take a long time for the broader economy to recover from the pandemic.

The dollar dipped slightly as investors weighed hopes for a swift economic recovery against fears about a resurgence in the pandemic.

The US currency bought 0.9414 Swiss franc, a 0.13% dip.

The dollar traded at 107.58 yen on Wednesday following a 0.3% gain on Tuesday.

The Australian dollar was flat at $0.6944 as sentiment stayed weak. Coronavirus lockdown measures were reimposed in Melbourne on Tuesday.

The New Zealand dollar was little changed at $0.6545.

The euro strengthened 0.12% to $1.2870. A recent fall in selling positions against the greenback provided room for possible further drops.

Sterling was steady at $1.2550 and at 89.90 pence against the euro on Wednesday, a day after hitting three-week highs. The British currency remained unmoved by Chancellor Sunak’s announcement of his plans to revive the economy.

British and European Union negotiators kicked off the Brexit talks on Tuesday. The top EU official saying he wanted a deal, “but not at any price”.

In commodity markets, oil prices eased on oversupply fears.

Brent crude futures fell 0.1%, to $43.03 a barrel. WTI futures slipped 0.3%, to $40.50 a barrel.

Gold topped $1,800 an ounce, for the first time since 2011 as investors preferred safe-haven assets. Spot gold strengthened 0.4% to $1,801.33 an ounce.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money