05.0.2021:Wall Street trades firmly at record highs (S&P500, DXY, USD/CAD, BTC/USD)

Wall Street closed the first week of the first half of 2021 at new record highs. A new wave of a rapid rally is backed by the news that the House of Representatives eventually approved a new stimulus package worth 715 billion dollars. At the same time, the US economy has already clicked into top gear. Besides, the labor market is also healthy that has been proven by the latest government report. So, let’s figure out what is actually going on in the largest global economy while the Americans are still having a break.
On Friday, S&P500 climbed to 4,352. Yesterday, on July 4, the US celebrated Independence Day. Today people are having a day-off. Nevertheless, the S&P500 futures are trading on the Globex electronic exchange. The index is expected to trade in the corridor of 4,300 to 4,360 until the New York session tomorrow. The economic calendar promises a quiet new trading week.
While the US stock market is extending a rally, the US currency is losing ground. Its index closed on Friday with a sharp drop off 92.70. Today the index is trading at about 92.20. It is likely to hold in the corridor of 92.00 to 92.50. Experts share the viewpoint that the US dollar is set to consolidate at the current levels. A further outlook for the US currency will depend directly on the inflation dynamic and the Fed’s policy moves. The regulator might shed light on its agenda on Wednesday.
The USD/CAD pair rose to 1.2340 on Friday evening. The currency pair is expected to trade in the corridor of 1.2220 to 1.2400. The odds are that it will consolidate in this range. As we see, the US dollar weakened against its Canadian rival to a greater degree than against other major currencies.
Over the weekend, global media released some high-impact news that China’s largest mining companies are scaling down their operations. All in all, mining firms worldwide have reduced their mining rates by 40% over a few recent months. Such news dealt a new blow to Bitcoin. Today the number one cryptocurrency is trading lower, having dipped to 33,600 dollars per token. It will be possible to predict a further decline or a recovery on condition that that price will break 30,000 downwards or 40,000 upwards. In the meantime, Bitcoin is set to fluctuate depending on the news background.
Now let’s sum everything up! The US stock market is trading firmly at the highest levels of the year. The door is still open for a further rally. However, we should not neglect one important circumstance. Muted trading activity on Wall Street in the summer and elevated quotes of shares make the market vulnerable to an expected deep downward correction which could happen anytime. Hence, it does not make sense to buy any stocks at the moment, but what you should do is keep close tabs on the news.
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00:00 American Economy support
00:45 S&P500
01:17 DXY
02:00 USD/CAD
02:22 Bitcoin
03:09 Outcomes

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