07.08.2020: USD to change its trajectory soon? (USDХ, DJIA, BTC, USD/CAD)

Market sentiment turned sour due to the measures taken by the White House against popular Chinese apps WeChat and TikTok. Investors were braced for the US government data on the labor market. The nonfarm payrolls came out to be stronger than expected. Oddly enough, the market gave a muted response.
Futures on the Dow Jones shed 0.38% to 27,180 ahead of the US nonfarm payrolls. Likewise, the S&P 500 was trading lower at 3,329.88.
According to the fresh statistics, employment in the US has been improving for the third month in a row. The jobless rate declined to 10.2% in July that is better than expected. The US public and private sectors added 1 million 700 thousand new jobs that also surpassed expectations. Economists had projected 1 million 600 thousand new jobs last month.
Nevertheless, better-than-expected data did not soothe worried investors because employment growth in the US eased in July amid the resurgence in new coronavirus cases. This drags down a fragile recovery in the US economy. This is a bad scenario for Donald Trump who is lagging behind his opponent Joe Biden in the latest polls. The nonfarm payrolls are expected to give fresh impetus to the talks between the White House and Congress on the second stimulus package.
Today the US dollar is regaining footing. Its index rose 0.33% in the early New York trade making efforts to climb above 93 points. The report on the US employment could be the key to a further trajectory of the US currency. Its index was at the crossroads before the nonfarm payrolls. Its growth to 93.50 and higher could signal a further uptrend. On the contrary, its decline below support at 92.80 could reinforce a downtrend.
Traders speculating on the Canadian dollar are evaluating a batch of macroeconomic data today. The unemployment rate in Canada dropped to 10.9% in July whereas the consensus suggested a modest decline to 11%. At the same time, despite a notable decrease from June, the jobless rate is still much higher than 5.6% in February.
The USD/CAD pair is carrying on with an upward correction today. It was trading at near 1.3350 in the early New York session. Later, the pair is expected to reverse downwards to 1.3410–1.3425.
On Friday, the loonie is facing another challenge. Canada’s Commerce Department is due to make a statement on Washington’s decision to raise tariffs on aluminum imports. If Canada’s authorities decide to retaliate, this move will put pressure on the loonie.
Last weekend, bitcoin surged to 12,000 dollars for the first time since August 2019. The cryptocurrency did not develop a further rally but entered into a correction phase.
Today its price is drifting higher. So, bitcoin has rebounded to 12,000 dollars per token. The consolidation is likely to last for a few days that will be followed either by a spike or a sharp fall. Meanwhile, the odds are that the price will climb higher.
To sum up, bitcoin is closing the week in close proximity to the level of 12,000 dollars that is the best evidence of good investment opportunities. Notably, its market capitalization expanded to 32 billion dollars over this week. No wonder, crypto investors are speculating on the prospects of a further rally. However, it would better to take the ongoing dynamic with a pinch of salt as indicators signal the overbought conditions in the market.

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