08.03.2021: US stocks trading in red while USD (DJIA, USDX, USD/CAD, BTC/USD)

The US stocks declined 0.2% on average in the early North American trade, though the equity market closed with gains on Friday amid rising stocks in the energy, commodity, and telecommunications sectors. Besides, China’s stock indices tumbled 3.5% today. Futures on the Nasdaq shed another 2%. Such negative dynamics come as no surprise. Investors are braced for a deep downward correction following a surge in January – February.
After intraday growth of 1.35% on Friday, the Dow Jones followed the overall trend on Monday. On Friday, the Dow Jones received a boost from better-than-expected nonfarm payrolls for February. The US public and private sectors added 379,000 jobs, much stronger growth than 182,000 jobs in the consensus. Nevertheless, all US benchmark stock indices are trading in the red today.
Meanwhile, the US dollar is extending its winning streak. Having broken key resistance of 91.55, the US currency is on track for a further climb. However, the prospects of a further bullish trend are modest. The technical chart reveals strong resistance at 94.00 – 94.70, the highest levels of the index logged in 2020. Once these levels are reached, the US dollar is likely to either reverse downwards or stall its advance for long.
The Canadian dollar has asserted strength against the greenback for 12 months, having reinforced from 1.45 to 1.26. The recent progress was propelled by a rally of Brent prices. Importantly, Canada’s economy is greatly reliant on the US economy to sustain the loonie’s bullish run. This accounts for major resistance of the USD/CAD pair at near 1.2400. Experts warn that the Canadian dollar could weaken towards 1.3200 against the greenback.
On the Binance crypto exchange, bitcoin is trading slightly higher than the milestone mark of 50,000 dollars.
Previously, the most popular cryptocurrency was hovering at the level slightly above 49,000 dollars. A few factors caused hesitation among crypto investors. For example, Goldman Sachs announced that it would relaunch its cryptocurrency trading desk for clients.
Nevertheless, all headwinds were dispelled by some events yesterday. The Chicago Board Options Exchange received applications for listing bitcoin ETF. Besides, MicroStrategy said that it had invested another 15 million dollars in bitcoin. Now crypto investors can sigh with relief because such events are bullish for the crypto market.  

The economic calendar reminds traders of US macroeconomic reports in the second half of the week. On Wednesday, the market will be alert to the core CPI for February. The data could add up to optimism about improving economic conditions in the US in February.


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