Be Careful Trade At The Beginning Of The Week, Read Here First!

 Expectations on the US fiscal stimulus package continued to drive trading earlier in the week, with major currencies trading higher against the US dollar.

However, market sentiment was seen volatile after US President Donald Trump over the weekend offered a $ 1.8 trillion coronavirus assistance package in talks with House Speaker Nancy Pelosi.

This includes the payment of checks to individuals and extensions in the Salary Protection Program. The amount offered is getting closer to Pelosi's proposal worth $ 2.2 trillion.

However, Trump's offer has received criticism from several Republican senators, most of whom are unhappy with the country's growing debt and fear the deal could jeopardize the Republican Party vote in next month's presidential election.

In fact, talks between Nancy Pelosi and Treasury Secretary Steven Mnuchin over the weekend have not yet reached an agreement.

This uncertainty is likely to once again limit the movement of major currencies in this week’s trading.

At the opening of the Asian session, the dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded stable at 93.10.

Meanwhile, the pound continued to maintain its strengthening momentum after reaching a one-month high on Friday supported by confidence in Brexit negotiations ahead of this week's European Union summit.

Over the weekend, Prime Minister Boris Johnson spoke with French President Emmanuel Macron urging for intensive discussions to bridge the gap.

In addition, sentiment also supported the euro to trade higher although at the same time price movements were also constrained by a significant increase in coronavirus cases in Europe which has sparked concern.