|

US Pres. Trump: Will invoke Defense Production Act against coronavirus

While addressing the press briefing with Coronavirus Task Force on Wednesday, US President Trump said that he will invoke Defense Production Act against coronavirus.

Key quotes

Will sign act shortly after news conference.

FEMA activated in all regions.

Two hospital ships being prepared to go to New York.

Will hold second news conference Wednesday or Thursday regarding FDA and coronavirus.

One hospital ship to be positioned on west coast after saying both would go to New York.

Potential for 20% unemployment a worst-case scenario, we are nowhere near it.

USD reaction

The US dollar hits the highest levels since March 2017 against its main competitors, with the US dollar index now trading at 101.26, up 1.68% on the day.

Mounting coronavirus concerns on the global economic growth and liquidity crunch in the markets has fuelled the massive surge in the demand for the greenback.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD holds steady above 1.1750 as traders await FOMC Minutes

The EUR/USD pair holds steady near 1.1770 during the early Asian session on Tuesday. Traders continue to price in the prospect of further rate cuts by the US Federal Reserve in 2026, following the 25-basis-point rate reduction delivered at the December meeting. The release of the Federal Open Market Committee Minutes will be in the spotlight later on Tuesday.

GBP/USD finds key support near 1.35 despite year-end grind

GBP/USD remains bolstered on the high end as markets grind through the last trading week of the year. Cable caught a bullish tilt to keep price action on the high side of the 1.3500 handle, though year-end holiday volumes are unlikely to see significant progress in either direction as 2025 draws to a close.

Gold rebounds to near $4,350 after Monday's 4+% correction

Gold is bouncing to near $4,350 early Tuesday, helped by renewed US Dollar weakness and a dismal mood. Gold was hit sharply by profit-taking on Monday during US trading hours and retreated towards $4,300, where buyers reappeared.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries, adoption of AI and tokenization of Real-World-Assets.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).