The US dollar strengthened in early trading on Thursday (10/22), recovering losses from the previous day amidst the focus still on developments in negotiations on the latest US stimulus in Congress. The US dollar index, which tracks the movement of the US dollar against a number of other major currencies, strengthened 0.2% to 92.78 at 9:45 WIB.

After seeing the US dollar index at its lowest level since September 2nd overnight. Both President Trump and US House Speaker Nancy Pelosi have made statements that raised hopes for the passage of a US stimulus package bill before the November 3rd election which had triggered a weakening of the US dollar and increased demand for risk assets.

However, optimism faded as continued opposition from Senate Republicans cut the chances of the bill passing before the election. Pelosi herself said that before resuming discussions with US Treasury Secretary Steven Mnuchin. She remained optimistic about reaching a deal despite Republican opposition but acknowledged that the measures may not pass before Americans head to the polls.

But with some market participants doubting that a deal will not be reached before November 3, the date of the US election, there is a cautious attitude in the market. The following economic data will be released today:

  1. BOE Governor Andrew Bailey speaks, who will talk about his views and policies in making decisions regarding interest rates or anything else that will affect the movement of the Eurozone economy.
  2. The US weekly unemployment rate data will also be released tonight at 19:30 WIB, last week it was released at 898k and this week it is predicted to be 860k. If it is released according to expectations, the US Dollar will strengthen, and vice versa.

Daily Pick

Today's prediction is that the EU pair (EURUSD) is expected to decline, and the recommended OP is SELL at level 1.18350 with a profit target of 10 - 20 points and stop loss at 5-10 points.

  • SELL 1.18350
  • TP 1 = 1.18250
  • TP 2 = 1.18150
  • SL 1 = 1.18400
  • SL 2 = 1.18450

Always prioritize Money Management and Risk Management.

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