01.07.2021: Find out about employment trends in US! (S&P500, DXY, USD/CAD, BTC/USD)

Commonly, on Thursdays market participants keep tabs on weekly updates on US unemployment claims. This time, they are alert to such data ahead of the government nonfarm payrolls.
The number of first-time applications for unemployment benefits contracted notably last week. So, investors are encouraged that the actual data is much better than expected. Indeed, they have hopes for a new rally in the US stock market. Let’s discuss prospects on Wall Street in detail!
The S&P500 has climbed to 4,297 today. The index is expected to trade in the corridor of 4,260 to 4,340 in the near time. Experts are ready to judge the overall performance of the US equity market in the first half of 2021. What is their verdict? The S&P500 has grown 14% since the beginning of the year. The US economy maintains considerable momentum. The US Fed estimates that the US GDP is likely to expand roughly 6-7% this year. As it was said yesterday on our channel, the US is enjoying a boom in consumer activity that is especially evident in the housing market and in the construction sector. These factors are setting the stage for the bullish trend in the US stock market. So, it is too early to speak about any decline.
The US dollar extended a winning streak in response to upbeat data on unemployment claims. Its index is trading higher at about 92.44. It is expected to hold in a narrow range of 92.00 to 92.80. Besides, the greenback benefitted from the ADP nonfarm employment report. Yesterday, it was the US dollar that advanced to a great extent but not the equity market. Now the Federal Reserve has clear evidence that the time is right to shift to neutral monetary policy.
The US dollar is holding the upper hand over its Canadian rival. However, high oil prices are hampering growth of the currency pair. Now it is trading at around 1.2400. Experts foresee a consolidation in the range of 1.2340 to 1.2460. In case the oil market makes a downward correction, the USD/CAD pair could extend growth to 1.2500. Apparently, the OPEC summit will be able to tame oil prices that will impact on the Canadian dollar. The cartel and its allies are going to negotiate the conditions for scaling up oil output starting from July. If approved, oil prices will halt growth for a while. Indeed, inflated oil prices are dangerous both for consumers and large suppliers because this will curb demand in the long term.
Bitcoin is still disappointing crypto traders. Yesterday, the most popular cryptocurrency rose a bit and tumbled on the same day. Its price sank by more than a thousand dollars in a couple of hours. The reason behind a decline in Bitcoin’s value is waning interest of institutional investors in the cryptocurrency. The digital token tried to break above 36,000 but without any success. So, a further fall is imminent. Perhaps, Bitcoin will be trading at the level below 33,000 dollars tomorrow.
All in all, the US stock market is ready to continue its dazzling rally amid a robust economic recovery in the wake of the pandemic and a highly successful vaccination campaign. Besides, fresh evidence of improvement in the US labor market will also contribute to the uptrend of US stocks. Follow developments in financial markets on InstaForex TV channel!

00:15 The number of initial applications for unemployment benefits in the United States
00:38 S&P500
01:31 DXY
02:06 USD/CAD
02:59 Bitcoin
03:36 The US market is quite ready to continue growth

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