11.12.2020: USD ticks higher while BTC trades lower (DJIA, USDX, USD/CAD, BTC/USD)

Futures on the US stock indices are trading lower amid fears over gloomy prospects for the US economy. The US dollar has ticked higher against six major rivals, including the Canadian dollar. Bitcoin is almost 3% down.
Futures on the US benchmark stock indices are trading mainly in the red as investors worry about the US economic recovery without solid financial aid from the government. Investors are fretted about soaring daily numbers of new coronavirus cases and an unsettled stimulus bill. The Dow Jones index slipped 0.61% to trade at 29,826.
The S&P 500 is also losing ground, having shed 0.93%. It settled down at 3,668.
The Nasdaq 100, on the contrary, grew 0.30% to trade at 12,401.
Traders fear that rampant coronavirus rates are dragging down a fragile economic recovery. In the meantime, the COVID-19 death toll in the US has already exceeded numbers of military casualties in the second world war. Yesterday, the Labor Department released a weekly update on unemployment claims. The number of first-time jobless claims logged a record growth last week since March.
Investors are alert to the news on a stimulus package. The talks between lawmakers have been in progress since August, but Congress is still in gridlock. Earlier, the Treasury Secretary proposed a draft bill worth 916 billion dollars to prop up the pandemic-stricken economy. The latest package is a bit more than the amount discussed previously in Congress.
Today the University of Michigan is due to publish a flash consumer sentiment index for December which measures a degree of households’ trust in the domestic economy. Experts predict that the indicator declined to 76.5 from 76.9 in November.
Today in the early European trade, the US dollar drifted down amid market optimism about the announcement of mass vaccination in the US that will set the stage for an economic recovery. Yesterday, the US Food and Drug Administration greenlighted the COVID-19 vaccine by Pfizer for the emergency use. So, vaccination in the US could kick off next week.
In the early American trade, pressure on the US dollar is easing. The US currency is expected to stall its three-week retreat amid Brexit concerns and fruitless talks on the stimulus bill. The US dollar index edged up 0.23% to trade at 90.97.
In the meantime, commodity currency is gaining ground amid growing risk-on mood. The Canadian dollar is no exception. The loonie owes its strength to hopes for an economic revival and successful mass vaccination. So, the Canadian currency has climbed to the strongest levels since 2018. At the same time, the US dollar also perked up on Brexit worries and the lack of stimulus. The USD/CAD pair is trading higher at 1.2770, having risen 0.27%.
Today bitcoin has slumped almost 2.73% to trade at 17,899 dollars per token.
The number one cryptocurrency has lost 7.8% since Monday. Some experts say that bitcoin could find the nearest support at 17,200 dollars and then at 16,300.
That’s all for today. Make sure you manage your risks! See you next week on InstaForex TV channel!

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