President Donald Trump decided to end COVID-19 stimulus negotiations and postpone them until after the election. He accused the Democratic Party of not having the good faith to negotiate. Trump's controversial decision surprised investors, triggering risk-off action and pressuring commodity currencies such as the Australian Dollar.

Many observers and economists consider Trump's move illogical, especially since the presidential election is just a few weeks away. A senior Wall Street banker called the 74-year-old president's decision self-defeating and a sign of surrender. He said,

"Why are you (Trump) doing this and losing? This is not like Donald Trump, who cares about the deficit and never gives up on fighting for what he wants." Trump's decision to end the COVID-19 stimulus negotiations was also criticized by members of his own Republican party

Senator Susan Collins stated that postponing negotiations until after the presidential election was a huge mistake. Collins admitted that she had contacted the Secretary of the Treasury and relevant parties after learning about Trump's decision, which she believed would greatly harm the electability of the Republican Party. Not to be left out, Trump's presidential rival, Joe Biden, accused Trump of turning his back on the American people, as stimulus was urgently needed to revive the economy that had been devastated by the pandemic.

The economic data to be released today include:

  1. Gold prices are likely to move lower in the short term amid the outlook for a stronger US dollar after President Trump asked his negotiating team to delay discussions on the stimulus package until the US presidential election in November. Market focus today will be on the release of the FOMC meeting minutes at 1:00 AM WIB/Thursday.
  2. Oil prices have the potential to move down in the short term amid sentiment of uncertainty over US stimulus and an increase in crude oil reserves of 0.9 million barrels in the American Petroleum Institute report last night. However, the decline is likely to be limited if the market considers the threat of a hurricane in the Gulf of Mexico and the strike by oil workers in Norway. Today's focus is on US crude oil reserves data from the Energy Information Administration at 21:30 WIB.
  3. EURUSD is potentially under short-term downward pressure due to the strengthening sentiment of the US dollar and if ECB President Christine Lagarde again gives a pessimistic view on the European economy today. Today's focus will be on German industrial production data at 13:00 WIB and ECB President Christine Lagarde's speech at 19:10 WIB.
  4. GBPUSD also has the potential for short-term downward pressure on the back of a stronger US dollar outlook, concerns about a no-deal Brexit outlook after the European Union refused to give concessions to the UK and the surge in Covid-19 cases in the UK. Today's focus will be on the UK house price index data released by Halifax Bank of Scotland at 14:30 WIB and the UK government at 15:30 WIB.

Daily Pick

Today's prediction is on the GOLD pair (XUL.s), it is estimated that it will continue to decline, and the recommended OP is SELL at level 1870 with a profit target of 5-10 points and a stop loss of 3-5 points.

  • SELL at Level 1870
  • TP 1 = 1865
  • TP 2 = 1860
  • SL 1 = 1873
  • SL 2 = 1875

Always prioritize Money Management and Risk Management.

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