President Donald Trump has said that COVID-19 destruction could have been stopped by China

Ross J Burland FXStreet

As US COVID-19 cases rise 1.5%; below a 1-week average of 1.6%, US President Donald Trump has said that COVID-19 destruction could have been stopped by China.

The country is ready to start moving forward and says that 2021 will be a great year from the economy’s standpoint. Realistically, it will boil down to whether the economy can get back to work without provoking the virus and the Federal Reserve's Chairman, Jerome Powell, argues that a full economic recovery may require a COVID-19 vaccine first.

Meanwhile, in other news of late, tensions between China and the US have never been hotter: A war of words: I call on China to expand the number of nuclear warheads & enhance nuclear deterrence – Global Times.

Market implications

The foundations are being layered down for a troublesome rest of the year and 2021. For a start, traders are concerned for the day to day strategic means for reopening economies pertaining to the COVID-19 lockdowns.

On Friday, "the market’s sentiment continued to fluctuate between fears of economic downturns and hopes on reopenings. Treasury yields remained depressed throughout the week," – FXStreet

Then, there are trade war tensions to contend with. Meanwhile, while the prospect of a war between the US and China has been simmering away on the backburners, it is still not considered as an immediate threat in the markets. However, the yen and US dollar, gold and Bitcoin are favoiured as safe haven instruments in theese times.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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