28.08.2020: USD doomed to trade at lows? (USDХ, DJIA, WTI, BTC, USD/CAD)

The COT reports reveal massive selling open interest for the US dollar. The greenback is weighed down by commodity and equity markets. The Dow Jones is on the way to testing the strongest level of February.
The stock market is trading under positive market sentiment. Investors are mulling over the keynote speech of Jerome Powell. His rhetoric provided risky assets with a boost. The US benchmark indexes again hit historic highs that could prompt investors to lock in profits.
The Dow Jones is extending the uptrend having closed with a 0.57% gain yesterday. Today it settled up at 28,620. Bearing in mind its inverse relation to the US dollar, the greenback has a zero chance for recovery. Besides, the bullish trend of gold and crude oil is also putting pressure on the US dollar.
In essence, Jerome Powell said that the central bank is going to spur the domestic economy by expanding money supply and keeping low interest rates until the unemployment rate declines back to normal. Another point in the forward guidance is that the regulator allows inflation to rise above the target 2%. It means that investors will seek shelter from inflation for their savings, thus shifting focus towards gold and stocks. On the contrary, the US dollar is doomed to extend weakness across the board. Having revised portfolios, investors choose in favor of precious metals and stocks. With this sentiment, they are selling off the US dollar.
On Friday, its index lost 0.9%. In the meantime, it broke both borders of the upward channel downwards and approached 92.20. Nevertheless, the index could climb to 92.42 amid the long-term uptrend.
The USD/CAD pair is trading within the clear-cut downtrend amid the greenback’s weakness. The nearest downward target is seen at 1.3050. The pair briefly dipped below this level, but sellers were not able to hold the price there. The loonie certainly benefits from Canada’s upbeat macroeconomic data. Today Canada reported on its GDP. Its national output expanded 6.5% on month in June, stronger than expected. The consensus had suggested a more moderate growth of 5.6%.
When it comes to the crypto market, bitcoin broke the level of 11,800 dollars earlier in the week but failed to climb higher. Later, the cryptocurrency followed the upward wave to 11,555 dollars and slipped to 11,100. Today the crypto market is making a correctional climb. Bitcoin is trading at 11,483 dollars per token. The price is expected to decline to 11,000.
Recently, the number one cryptocurrency is trading mainly flat. Experts point out a variety of factors to increase demand for bitcoin for the medium-term such as optimism across global trading floors, accumulating computation capacities by miners, a growing number of large e-wallets, and the price fixing above 10,000 dollars.

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