FX.co ★ 30.11.2020: USD extending slide (DJIA, USDX, USD/CAD, BTC/USD)

30.11.2020: USD extending slide (DJIA, USDX, USD/CAD, BTC/USD)

Futures on the US stock indices are trading slightly lower amid a downward correction. Meanwhile, the US dollar is extending weakness against its six rival currencies, including the Canadian dollar. Bitcoin perked up, heading for 19,000 dollars per token.

On the back of the downward correction, the Dow Jones shed 0.48%. The Nasdaq, on the contrary, inched up 0.03%. The S&P 500 declined 0.37%.

Despite a minor slide in the futures on the final day of November, American markets could finish the month with gains. For example, the November rally of the Dow Jones could log the strongest monthly growth since January 1987. The rally is propelled by hopes for an effective coronavirus vaccine and waning political jitters in the US.

On Monday, investors are revising market sentiment because American exchange floors closed the last week with a 1% advance. Improving prospects for the economic recovery in 2021 aroused optimism among investors.

The US dollar is extending weakness amid the vaccine-driven optimism and expectations for the massive fiscal stimulus from the Federal Reserve. Vaccines by Pfizer and BioNTech are to be approved in the nearest days in the UK. Moreover, the first days of Christmas sales in the US revealed robust buying activity, this indicating rising consumer confidence. Having spotted positive consumer sentiment, traders ventured to sell the safe haven dollar.

Meanwhile, San Francisco and Los Angeles are introducing new restrictions on the back of soaring coronavirus cases. The authorities in San Francisco are closing cinemas, museums, and gyms. Rates of hospital admittance are on the rise in the US.

Remarkably, traders are not concerned about the COVID-19 resurgence and tighter restrictions in the US and Europe. So, they are poised for riskier assets.

The US dollar index made a 0.1% downtick at the moment of this news release. So, it is trading at 91.654, the lowest level since April 2018. Thus, the US dollar index is closing November with the sharpest monthly drop since June.

The US dollar is losing ground against the loonie. The currency pair shed 0.27% to trade at 1.2954.

Bitcoin has surged 4% on average today to trade at nearly 18,984 dollars. Analysts reckon that the cryptocurrency has completed its downtrend. Bitcoin is expected to develop a smooth advance heading for 19,000 dollars per token.

On Tuesday, November 24, the number one cryptocurrency spiked above the level of 19,000 for the first time since December 16, 2017. Later, it went into a correctional decline. On Thursday, the cryptocurrency sank to 16,367 dollars. It resumed a rally over the weekend.

The psychological background in the crypto market is quiet, so the bulls are holding the upper hand. Analysts do not rule out that bitcoin will be able to reach the level of 19,200 dollars.

Meanwhile, the global stock markets are trading mainly sideways. Chief American immunologist Anthony Fauci warns Americans to be alert to the virus. Following Thanksgiving Day, there is a risk of a new COVID-19 resurgence amid worse weather conditions.

*Die zur Verfügung gestellte Marktanalyse dient zu den Informationszwecken und sollte als Anforderung zur Eröffnung einer Transaktion nicht ausgelegt werden
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