Risk off flows after Pres. Trump test positive for Covid-19 virus
The "risk off" trade is on as the market reacts to the news that President Trump has tested positive for Covid-19 virus. VP Pence has tested negative. The JPY is the strongest. The AUD is the weakest. The USD is more strong with gains vs all major currencies with the exception of the GBP and JPY. The GBP is higher on news that PM Johnson is inserting himself into the Brexit negotiations picture and will meet with EU president von der Leyen tomorrow. The US stocks are lower. Of course, we have US jobs at 8:30 AM ET/1230 GMT with expectations for 850K (vs 1.37M last month). The unemployment rate is expected to come in at 8.2% from 8.4%.
The ranges and changes have JPY pairs lower. The GBPJPY is less negative on the back of the GBP strength. The USDJPY is off lows but lower by -37 pips after being higher in the early Asian session.
In other markets:
- Spot gold is trading near midrange and marginally higher with a gain of $0.66 or 0.03% at $1906.50. The high price reached $1917.16. The low extended to $1889.93.
- Spot silver is up $0.15 or 0.65% of $23.94. It's a low reached $23.48. The high price extended to $24.14
- WTI crude oil futures trading trading lower by $-1.43 or -3.69% at $37.24. It's high price reached $38.65. It's low price extended to $36.80.
In the premarket for US stocks, the futures markets are implying a lower opening:
- The Dow Jones is down -354 points
- S&P index is down -50 points
- NASDAQ is down -254points
In the European equity markets, the major indices are trading lower.
- German DAX, -1.2%
- France's CAC, -1%
- UK's FTSE 100, -0.86%
- Spain's Ibex, -0.5%
- Italy's FTSE MIB, -0.9%
In the US debt market, the snapshot of yields are modest lower with a modest decline in the yield curve:
In the European debt market, the benchmark 10 year yields are lower across the board.
