The United States has now overtaken China, becoming the country with the largest number of confirmed coronavirus cases in the world. Latest official numbers report that there are 81,943 Americans now testing positive for Covid-19.
Medical facilities in the country are running low on ventilators and protective masks and hampered by limited diagnostic testing capacity. Scarcities of protective masks, gloves, gowns and eyewear for doctors and nurses. Reports suggest that there are healthcare workers recycling old face masks, making their own or even using trash bags to shield themselves - have emerged as a national problem.
What does this mean for the economy?
The markets saw the initial crippling signs that this had on China, well is still having. China’s whole economy has slowed right down, with analysts expecting GDP to come in at 2.6% from 6.1% reported in January. The country reported in its largest sector for growth, manufacturing, a huge fall to the worst seen since
Now, given the growing cases in the United States similar if not potentially larger impacts will be seen on the respective economy. Each data point in April is going to be heavily scrutinized to see the incoming damages for the U.S.
The USD did enjoy it's run higher, benefitting from chunky safe-haven flows, while other economies were reporting growing Coronavirus cases. However, since the FOMC has taken action to try and cushion the damages for the U.S. economy, with strong stimulative measures, the USD has greatly fallen in value.
Another blow for the dollar and also for stocks would be if these drastic rising in cases continue to cripple economic data. Signs of this have already been observed, given the large increase in unemployment claims reported on Thursday by the U.S, jumping over 3 million in a single week.
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