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EUR/USD has been stabilizing closer to 1.18 after Trump’s discharge. US fiscal stimulus, eurozone coronavirus cases and speeches from central bankers are eyed on Tuesday, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“The critical key is the US fiscal stimulus. The sooner and the larger a relief package comes, the more the safe-haven dollar can fall. House Speaker Nancy Pelosi – who refused to go the coronavirus-infested White House – had a long telephone conversation with Treasury Secretary Steven Mnuchin. The extended conversation is an upbeat sign, and so is the lack of any leak from that talk. No news is good news in this case.”

“Trump, who said he is “feeling better than 20 years ago,” is probably not that content with his standing in opinion polls. National averages are pointing to rival Joe Biden leading by around 8% and he also trails in critical battleground states. The most recent surveys suggest were taken after the debate but do not fully encompass his positive coronavirus test. It seems that he did not get a sympathy bump.”

“Christine Lagarde, President of the European Central Bank, will speak about the economy as eurozone coronavirus infections are on the rise. If Lagarde expresses concerns and readies more stimulus – also amid falling inflation – the euro could suffer. On the other hand, data from the summer remains encouraging – German factory orders exceeded projections with an increase of 4.5% in August.” 

“Jerome Powell, Chairman of the Federal Reserve, will also deliver remarks later in the day. He is unlikely to stray from the bank’s pledge to keep rates lower for longer, but without offering any imminent changes to the policy. With four weeks to go until the elections, Powell is unlikely to say anything earth-shattering.”