15.01.2021: USD holding gains but US stocks trading in red (DJIA, USDX, USD/CAD, BTC/USD)

Futures on the US stock indices are sliding today. A weekly update on US initial unemployment claims released yesterday logged dismal figures. The US dollar index is extending growth against major currencies, including the Canadian dollar. Bitcoin dipped following a modest climb yesterday.
The US benchmark stock indices are losing steam today. The Dow Jones shed 0.4%. The Nasdaq fell 0.2%. The S&P 500 dropped 0.3%.
Market participants are mulling over a new relief package proposed by Joe Biden. Yesterday, the President-elect unveiled details of his stimulus plan worth 1.9 trillion dollars. Later, the bill was approved by Democrats in Congress.
The news came as a pleasant surprise to Wall Street. Responding to the news, investors have already priced in the massive stimulus package. Now the market is in suspense, trying to predict what will come next.
Optimism could be reinforced by upbeat quarterly financial records of leading American companies.
The highlight of the day is retail sales data for December. This metric is seen as a barometer of current economic conditions. Perhaps investors do not lay hopes on retail sales. That is why futures on the key US stock indices are trading in the red.
Yesterday the US Labor Department posted a weekly update on initial jobless claims. The number of first-time applications for unemployment benefits surged to a record degree since March 2020. Last week, 965,000 Americans filed for benefits for the first time that is much more than the expected 795,000 new claims. Interestingly, investors prefer to put such grim data on the back burner. The market is anticipating a season of corporate financial reports.
In the meantime, the US dollar is trading mixed against the euro and the yen. At the moment of writing this material, the US dollar index picked up 0.36% against a basket of six rival currencies to trade at 90.50.
The greenback also gained 0.64% versus its Canadian counterpart. The USD/CAD pair is trading at near 1.2718.
Today bitcoin is moderating its bullish run. Later in the trading day, the most popular cryptocurrency dipped 4.50%. Now bitcoin is trading at 37,638 dollars per token. According to CoinMarketCap, the most-trusted cryptocurrency data authority, bitcoin spiked to 39,966 dollars earlier today but rapidly lost steam. The number one cryptocurrency did not sink as low as 31,000 dollars. It means that crypto investors are determined to keep the bitcoin price at elevated levels, even despite a record bitcoin sale at 1.5 billion dollars this week.
The crypto king is not going to give up amid anticipated large-scale fiscal stimulus in the US. This could speed up inflation in the US that will boost demand for unconventional assets, including bitcoin. Hence, crypto fans are betting on further bitcoin strength.
Investors are alert to first reports on corporate earnings. Market sentiment will greatly depend on financial records of American companies for the fourth quarter of 2020. Such data will enable Wall Street investors to make forecasts of the stock market development in 2021.


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