The greenback plunged after positive signals from talks on the US stimulus program plan to tackle Covid-19. Market players' focus since the beginning of the week has been on the US stimulus agreement. US House of Representatives Speaker Nancy Pelosi gave a deadline of Tuesday night (October 20) to resolve the deadlock in fiscal stimulus negotiations before the presidential election is held on November 3.

The results of yesterday's talks between the Democrats and Republicans showed encouraging results, that both parties are getting closer to an agreement. Each party is also known to be trying to shorten the differences regarding the amount of stimulus that will be disbursed to help economic recovery.

This positive news was confirmed by Pelosi's spokesman, who said that negotiations would continue on Wednesday today. When asked if an agreement could be reached next week, Pelosi herself said, "I hope so and that's the plan."

Meanwhile, in a separate place, President Trump did not deny the possibility of a larger stimulus being disbursed despite rejection from several Republicans. "I want to do it (stimulus) bigger than the Democrats," Trump said in an interview with Fox News. The fairly tough negotiations to pass the stimulus package have also caught the attention of economic experts. They argue that whether or not a stimulus deal is reached will be the main driver for the US Dollar.

All eyes are on whether the Stimulus Bill will be approved. If an agreement is reached, it will weaken the US Dollar, particularly against commodity currencies," said Kim Mundy, a currency analyst at the Commonwealth Bank of Australia in Sydney.

Daily Pick

Today's prediction is on the GOLD pair, it is estimated that the gold movement will continue to increase, and the recommended OP is BUY at level 1921 with a profit target of 5-10 points and a stop loss of 3-5 points.

  • BUY 1921
  • TP 1 = 1926
  • TP 2 = 1931
  • SL 1 = 1918
  • SL 2 = 1916

Always prioritize Money Management and Risk Management.

Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and the GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia YouTube account, which is full of useful information, and follow our Instagram account to get updates on various interesting webinars you can attend.