​Buoyant USD on Fading Stimulus Deal Hopes

WikiFX News (19 Oct.) - The DXY recently picked up a small risk-averse bid as the US presidential election is approaching. Thus the US dollar is expected to rise on the fading optimism about fiscal stimulus.

The US presidential election only has less than a month to go, with the polls strongly favoring Biden. President Trump is unlikely to give up without a fight, leaving the dollar underpinned by the anti-risk buying ahead of the vote.

This week, investors are more likely to look at the US stimulus bill negotiations which seem gridlocked ahead of the election despite months of discussion. Besides, the earnings calendar is busy next week with market heavyweights Procter & Gamble, Netflix, Tesla, and Intel Corp all worth keeping an eye on.

Technically speaking, the DXY slightly rebounded after bottoming out around 93 with this support enduring in the short-term. Meanwhile, the DXY seems to have difficulty breaking the 20-SMA even it has breached above the 50-SMA. Once penetrating recent highs, the DXY is possible to further test the 94.79.

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Chart: Trend of DXY