The US dollar is still moving sideways but tends to weaken against other major currencies in early-week trading (September 5, 2020) as investors await the latest news on President Trump after he was diagnosed with the coronavirus last week.

News of Trump contracting COVID-19 rocked global markets and triggered a risk off that pushed the safe haven US dollar higher in trading last Friday. President Trump was flown to the hospital last Friday for more intensive treatment after his condition worsened.

In fact, the 74-year-old Trump had difficulty breathing because his blood oxygen levels were below normal. The latest report came from the team of doctors treating Trump on Sunday (04/09/2020) yesterday saying that they were monitoring Trump's lung condition after receiving additional oxygen.

The news about Trump's real condition is quite confusing, because on Saturday, the White House administration confirmed that Trump was in good condition. And the latest news reported on Sunday said that Trump was ready to return to the White House after being given Steroids. However, epidemiologists from the Federation of American Scientists think Trump is too hasty.

  1. Gold prices are likely to remain under downward pressure in the short term amid a stronger outlook for the US dollar following optimistic statements from the White House regarding President Trump's health after he tested positive for COVID-19. Another sentiment potentially weighing on gold prices is the lack of further progress in US stimulus negotiations. Today's focus will be on the US ISM Non-Manufacturing PMI data at 21:00 WIB.
  2. Oil prices have the potential to move down amid concerns about slowing demand due to the Covid-19 pandemic and global oversupply after OPEC supply reportedly increased production in September from the previous period and Baker Hughes reported an increase in US rig activity last weekend.
  3. EURUSD has the potential to move down in the short term amid the outlook of avoiding risky assets, the potential for the US dollar to strengthen and concerns about the spike in Covid-19 cases in several European countries. Today's focus will be on German and Eurozone service index data released starting at 14:55 WIB and 15:00 WIB, Eurozone confidence level data at 15:30 WIB, Eurozone retail sales at 16:00 WIB and developments in the Eurogroup meeting.
  4. GBPUSD has the potential to move down in the short term if the US dollar performance is still solid amid the uncertainty of stimulus in the US. However, the decline has the potential to be limited and can move up if the market welcomes the progress of Brexit negotiations, where negotiations have been agreed to be extended for another month. Today's focus will be on the UK services index data released at 15:30 WIB.

Daily Pick

Today's prediction for the USD/CHF pair is that the Swiss Franc will likely continue to strengthen (downward chart), and the recommended order is to SELL at the 0.91600 level. The target profit is 10-20 points, with a stop loss at 5-10 points.

  • SELL at Level 0.91600
  • Tp 1 : 0,9150 (10 Point)
  • Tp 2 : 0,9140 (20 Point)
  • SL 1 : 0,9165 (5 Point)
  • SL 2 : 0,9170 (10 Point)

Always prioritize Money Management and Risk Management.

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