Investor concerns about the possibility of a second wave of the coronavirus in Europe are quite justified. The latest reports from the relevant authorities revealed that COVID-19 cases in Spain increased by 14,389 on Friday last week, followed by France with a surge of 13,498 cases on Saturday.

These figures surpass the daily record set in March. This condition also confirms that market players' fears of a possible resurgence of the pandemic as winter approaches are increasingly evident. Market players flock to buy the US Dollar as a safe haven.

Considering the economic damage that will be caused by the surge in COVID-19 cases, some analysts predict that the Euro, Sterling and the commodity currency trio (AUD, CAD and NZD) will weaken further.

  1. This Tuesday, the Japanese market is closed to commemorate the first day of autumn. At 13:00 WIB the UK Office for National Statistics will report public sector net borrowing for the period of August, if this data is reported lower than the projection, it means that the budget deficit is decreasing so that GBPUSD has the potential to strengthen.
  2. On Tuesday afternoon at 17:00 WIB, the Confederation of British Industry (CBI) will release industrial orders data for September. If this data shows slowing activity in the UK business sector, this has the potential to put downward pressure on GBPUSD.
  3. Tonight at 9:00 p.m. the National Association of Realtors will release data on home sales in the US for the month of August. This report measures the strength of the US housing market and is a leading indicator of the strength of the economy as a whole. If the data is released lower than expected, the price of gold has the potential to strengthen.
  4. At 21:30 WIB, Federal Reserve Chair Jerome Powell will again make a statement regarding the current situation and conditions of the economy. If Powell makes a dovish statement, gold prices have the potential to strengthen.

Daily Pick

Today's prediction for the AUD/USD pair is a decline, and the recommended order is to SELL at the 0.71900 level. The target profit is 10-20 points, with a stop loss at 5-10 points. Always prioritize Money Management and Risk Management.

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