12.06.2020: Markets licking wounds (USDХ, DJIA, WTI, Brent, BTC, USD/CAD)

Wall Street is licking wounds after the worst day in the latest three months. Today futures on the major US stock indexes have been gaining ground. Fears about the second wave of the pandemic revived demand for the US dollar as a safe haven asset.
Pessimistic forecasts of the US Fed on mounting coronavirus rates in the US cooled down investors’ euphoria. Today Wall Street is regaining optimism. Futures on the Dow Jones rose 2.1% in the early New York trade. The index seems to be determined to win back some of yesterday’s losses which were as deep as 7%.
The positive market sentiment sharply confounds evidence of a painstaking recovery in the US economy following the pandemic. Besides, experts warn of the second wave of the coronavirus which could cast a shadow over the economic prospects.
Some experts assume that a growing infection rate in the US in the recent days is linked to the social riots.
As of June 12, over 2 million coronavirus cases have been recorded in the US. Densely populated states are still fighting against high infection rates. Traders are unnerved because this derails the economic recovery.
Today the University of Michigan published a consumer sentiment index for early June. Investors will figure out how slow economic growth and massive clashes have impacted on consumer sentiment.
The US dollar index is trading flat today at near 96.7. Yesterday, the index perked up amid risk aversion. Besides, the stock market declined in the face of the challenge.
The Canadian dollar suffered a slump in oil prices and an advance of its American counterpart. The USD/CAD pair climbed above 1.36. On Friday, the loonie has managed to regain some of its losses. It rose 0.6% and retreated to 1.3540.
Meanwhile, oil prices also rebounded following a plunge to fresh lows. Oil bulls are again struggling to take control. Brent crude is creeping to 40 US dollars barrel, while WTI is approaching 37 dollars. Still, the oil market is going through a downward correction. Some analysts foresee a new wave of selling.
Yesterday’s nosedive in financial markets disrupted another bitcoin’s attempt to test the psychological level of 10,000 dollars. The most popular cryptocurrency closely approached this level. Nevertheless, the overall pessimism pushed bitcoin violently down to local lows at 9,100 dollars. On Friday, bitcoin is regaining footing and trading at the level slightly above 9,500 dollars per token.
Analysts do not rule out a further fall to 8,840 dollars. Resistance is seen as the local high of 10,368.
On May 7 and June 1, bitcoin tried to break the level of 10,000. However, it failed to consolidate at the long-awaited high. The wise strategy for crypto traders is to wait patiently for the right market entry point.

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