02.10.2020: Selling wave hits stock market (USDХ, DJIA, WTI, BTC, USD/CAD)

Investors respond with pessimism to the news that the US President has been tested positive for the coronavirus. So, futures on the key US stock indexes opened with a steep fall. The US dollar found support from risk aversion. The focal point today is the official report on the US labor market.
Market participants are puzzling over the presidential election in the US. Today, the market has found out that Donald Trump was confirmed to have COVID-19 after his close aide had fallen sick. The announcement came as a bombshell. Besides, the news released in the morning reminded investors that the economic crisis is raging across the top global economy. Now the market is closely monitoring the coronavirus resurgence. The US reported over 43,000 new confirmed cases with the death toll of 850 people for the latest 24 hours.
Market sentiment on Wall Street is turning sour. The benchmark stock indexes slumped over 1.5% in the early New York trade. Futures on the Dow Jones tumbled 1.7% to trade at 27,226.
The US dollar index has been trading with a curious dynamic. It was at the crossroads before the publication of the nonfarm payrolls. The greenback was hesitating whether to follow the uptrend or downtrend. Experts point out that the level of 94 is of crucial importance. If the index is able to overcome it and fix above, this will reinforce the greenback’s advance.
The first Friday of October is the day of a monthly report on the US labor market. This data could determine trading sentiment on the US dollar depending on the scores. The US public and private sectors added 877,000 jobs in September, slightly more than the consensus for 850,000 jobs. Besides, the unemployment rate fell to 7.9% last month from 8.4% in August. The market had expected the jobless rate at 8.2%.
At present, investors adjust portfolios depending on the coronavirus news but neglect positive news. So, they took little notice of the news that the lawmakers approved the stimulus package of 2.2 trillion dollars.
The Canadian dollar is losing ground like other commodity currencies. Oil prices are accelerating a decline on late Friday. WTI plummeted over 4%. Sellers are trying to push the price below the level of 37 dollars a barrel. Global oil prices sank to the lowest level in 3 weeks. Donald Trump dampened the risk-on mood across financial markets.
In this context, the USD/CAD pair is extending its climb with the upward target level of 1.3430. At the same time, experts do not rule out a retracement downwards to 1.3250.
The news that Donald Trump is infected with COVID-19 has affected bitcoin as well. Its price dropped almost 3%, but the cryptocurrency has been able to regain some losses by the end of the day. The number one cryptocurrency has responded negatively to the news about a lawsuit against BITMEX, the crypto derivatives exchange. Yesterday, the crypto market showed choppy trading. Bitcoin was gyrating with 5% price swings and closed the day in the red.
The level of 10,525 is seen as very important. If tested, bitcoin will be ready to develop the first bullish wave which will be followed by a climb to 10,750.
Interestingly, the bitcoin price has not declined below 10,000 dollars per token over the last two months. This signals resilience of the most popular cryptocurrency.

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