The US dollar index (DXY) rose by more than 0.10% as investors reacted to news that President Trump had contracted Covid-19. The index is also reacting to the relatively strong nonfarm payroll numbers from the US.
Trump tests positive for Covid-19
The US dollar index rose as investors rushed to the safety of the greenback after Trump tested positive for Covid-19. The index rose as the US dollar gained against the euro, Canadian dollar, and Swiss franc. It nonetheless fell against the Swedish krona, Japanese yen, and the British pound.
In a statement earlier today, Donald Trump said that he and the first lady had tested positive for the virus. The report came two hours after he announced that Hope Hicks, a close aide had tested positive for the illness.
This news caused shivers around the world, with European and Asian equities tumbling. In the United States, futures tied to the Dow Jones and S&P 500 declined by more than 1.25%. Similarly, in Europe, the DAX index and FTSE 100 declined by more than 0.50%.
The dollar index rose as investors predicted significant risks in the coming weeks. For one, they are unsure how many senior leaders have contracted the illness. For example, according to the New York Times, Trump has interacted with Vice President Pence and other senior leaders. Also, there is the risk that the US will have a contested election in November.
US nonfarm payrolls
The DXY is also reacting to the official nonfarm payroll numbers from the United States. According to the Labour Department, the US added more than 661kk jobs in September. The median estimate by economists polled by Reuters was 850k
