EUR/USD to slump if Trump stays in hospital

EUR/USD has been attempting to bounce amid hopes that Trump leaves the hospital. The greenback may rise if the president does not return to the White House, yet fiscal stimulus hopes could balance the picture, according to FXStreet’s analyst Yohay Elam. 

Key quotes

“Doctors have been scrutinizing the official data and are perplexed. Dr. Sean Conley, the president’s personal doctor, said that Trump has been given dexamethasone – a steroid that has proved useful for serious coronavirus cases. If the president is doing well, why would he need that treatment? And if doctors are throwing the kitchen sink at Patient No. 1, dexamethasone could do harm. In general, steroids suppress fever and also cause an upbeat feeling, sometimes reaching euphoric levels. That could explain Trump’s positive video message and his drive-by to greet supporters. Entering an SUV, even with a mask, put his staff at risk of contracting the virus.”

“The good news coming from the hospital is that Trump spoke with Senate Majority Leader Mitch McConnell about the fiscal stimulus bill. House Speaker Nancy Pelosi expressed hopes of striking a deal on Friday, helping stocks recover from the shock of hearing about Trump’s positive coronavirus test. If both sides release optimistic assessments, the greenback could fall.”

“While the world is closely watching Trump’s coronavirus case, infections in Europe continue rising and somewhat limit the common currency’s gains. The Spanish capital Madrid – Europe’s hardest-hit city – was put under lockdown while the Paris region’s alert level was raised to a maximum. COVID-19 cases are also rising Germany, the continent’s largest economy.”