The Euro is looking strong. Overview for 22.10.2020

On Thursday afternoon, EURUSD remains strong; expectations of a new stimulus package in the USA put pressure on the USD. 

The major currency pair remains elated not far from its monthly highs. The current quote for the instrument is 1.1860.

At the moment, there are no interesting statistics that may influence EURUSD movements, that’s why investors are focusing their attention on what is happening in the US Congress, which, a week and a half to go before the elections, is very close to arriving at a consensus with the White House in regards to a new stimulus package for the American economy. Donald Trump is doing almost the impossible: despite the split of opinions in his own party, he is making a deal on allocating an additional $2.2T to support the country’s economy. Democrats had been working on this particular sum of money in their negotiations for several months but the progress happened just recently. 

It’s quite clear that no one will give such an amount of money right here and now because it is a physical impossibility. Republicans and Democrats have a lot of misunderstandings when it comes to the key aspects of the stimulus, and that’s also important. However, the money will be allocated regardless of who will take the White House in November. 

Later today, one should pay attention to the Consumer Confidence report for October, which is expected to show -15 points after being -14 points in September. In the evening, the USA will report on the Existing Home Sales and the CB Leading Index for September.