07.09.2021: Long weekend over! (S&P500, DXY, USD/CAD, BTC/USD)

US markets reopened today after a long weekend. Notably, the US stock market was trading in a tight range at around record highs for the last five trading days that is almost a week. Wall Street began a new trading week quietly. On Tuesday, the economic calendar lacks macroeconomic data from the US. On Wednesday, the US Fed is due to release an important report on current economic conditions, called the Beige Book. Besides, market participants will be alert to a weekly update on US unemployment claims on Thursday. While US trading floors were shut for the national holiday, futures on the S&P 500 were trading without a break on the long weekend. Nevertheless, the index was trading in the same range at the highest levels of the year. The S&P 500 stood up at near 4,535. The chart reveals that the index is expected to remain inside a narrow range of 4,500 to 4,550. Yesterday, the US dollar eventually found support of the buyers following a long losing streak. The US dollar index was trapped between 91.80 and 92.20 for a long time. However, yesterday the index perked up and is now picking up steam in line with our forecasts. Now, the trading range is getting wider. It is likely to rebound to 92.5 and then fluctuate at around this level. Perhaps, the US Fed’s Beige Book which will be published tomorrow will enable the US currency to regain footing. While the US dollar awaits support from the statistics and crude oil is again trading higher after a plunge on Monday, the USD/CAD pair stalled its decline. The currency pair is now trading at about 1.2540. The expected range is seen from 1.2500 to 1.2580. Besides, a new bullish move in oil prices is likely to push the USD/CAD pair down again. At the same time, Bitcoin is extending a rapid rally. The important news today is that El Salvador has become the first country in the world to recognize Bitcoin as legal tender. In light of the news, the flagship cryptocurrency spiked to 52,600 dollars. Unfortunately, it has not been able to sustain at this high. Following the spike, the price dropped to 50,850 dollars. Experts say that the ongoing retracement will be followed by another attempt to surpass the level of 51,000 and fix above it. If Bitcoin copes well, it will continue its rally as we told you earlier. So, let’s see what the new trading day in the US will bring to the market and what strategies will be picked by investors. At present, market participants are focused on a policy update that will be unveiled by the ECB tomorrow. Policy decisions could be a catalyst for changes in the US stock market and the US dollar index.

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00:00 Intro
00:41 S&P500
01:11 DXY
01:47 USD | CAD
02:19 BTC | USD