US Pres Trump: Coronavirus spread isn't necessarily inevitable, Fed rate still too high

Ross J Burland FXStreet

US President Trump is crossing the wires and has stated that he Coronavirus spread isn't necessarily inevitable. He also says that the Fed rate is still too high. This statement follows the S&P 500 down 99 points and the 10-year Treasury yield dropping below 1% for the first time in history as uncertainty grips financial markets.

Additional comments

Not looking at restricting domestic travel on virus.
Says he spoke to the leader of the Taliban earlier on Tuesday, agreed on "no violence" in call with Taliban.
Considering cutting off travel to other Coronavirus hot spots.
Not concerned about markets today, disappointed fed is following, not leading.
Trump says his administration is not looking at restricting domestic travel over coronavirus.
Trump says he is considering cutting off travel to other coronavirus hot spots.
Trump asked if he would support US participating in Olympics in japan amid virus outbreak, says it is up to Japan.

Market implications

The coronavirus spread has encouraged both the Reserve Bank of Australia and Federal Reserve to cut interest rates. We have seen unprecedented market volatility with the US 10-year yields falling to below 1% for the first time in history. The Fed is expected to do more and that's keeping the US dollar down. However, the greenback could be expected to attract a safe haven flow as a coordinated effort from central banks will likely see additional action from other central banks.

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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