26.06.2020: Traders mulling over USD investment prospects (USDХ, DJIA, WTI, BTC, USD/CAD)

Wall Street is unnerved but not desperate. Investors are in the wait-and-see mood. They want to figure out whether the global economy is facing a new coronavirus threat or is going to show the green shoots of recovery soon. The US dollar is enjoying buoyant demand, though the highest levels of March above 100 are still impossible. Massive selling hit the crypto market. Bitcoin gave up the struggle for conquering the level above 10,000 dollars.
Futures on the US benchmark indexes came under selling pressure after a fierce battle between bulls and bears. Nevertheless, the US equity market is about to close the week without notable changes. Investors take notice of rampant rates of new coronavirus cases but still are not ready to price in a slowdown in the US economy due to the new shutdown in several American states. Market participants hope that a new downturn will be solved by cash injections by the US Fed. So, demand for US stocks will increase again after a pause.
Nevertheless, common sense could win the day, so markets could be crippled by another collapse. Meanwhile, investors have not spotted any worrisome signs. Markets have been turbulent lately. Futures on the Dow Jones were 0.6% down at 25,434 in the early New York trade. The S&P shed 0.3% to trade at 3,061.38.
The US dollar index does not offer lucrative investment opportunities as in the previous sessions. It edged up 0.06% to 97.40. Nevertheless, the index is still trading in the overall uptrend. Fears about the second pandemic wave assure investors to buy the US currency.
Traders do not expect a serious climb as in March. Besides, some analysts believe that the recent downward correction of the greenback triggered the overall bearish trend. Its value measured in terms of a foreign trade volume dropped 6% from the strongest levels of March. Still, the US dollar is 9% higher than the lows of 2018 and almost 2% higher than the lows posted last year.
Today traders are alert to a series of macroeconomic data from the US. A report on consumer spending for May will give insight into a recovery of the main driver for the US economy.
The Canadian dollar is still losing ground versus its American rival. Obviously, the downward correction of oil prices and a threat from Washington to impose new tariffs on Canada’s aluminum imports take the shine off the Canadian currency. Besides, the loonie buyers were discouraged because Fitch Ratings downgraded Canada’s rating to AA+. The USD/CAD pair is trading firmly higher aiming to test 1.37.
Bitcoin has been rejected a few times from the psychological level of 10,000 dollars. The crypto currency is determined to conquer the peak which was lost in September 2019. However, any attempt has been foiled by bears this week. The most popular crypto currency has been unable to hit a new local high, so buyers are losing patience.
Bitcoin has been trading lower for the third day in a row. Friday’s intraday high is 9,200 dollars. Pessimism of crypto traders comes from fears about the second pandemic wave as well as expiration of bitcoin options worth 1 billion dollars in the short term.
The risk of a new coronavirus outbreak reduces demand for commodities and dampens appetite for riskier assets, including digital currencies. So, the crypto market is also facing massive sell-offs.

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