Hi everyone! Let’s begin our video with the crucial news for the US stock market. Today the market is alert to the data on the US labor market. Let’s discuss what investors found out from a weekly update on US unemployment claims.
Today the US Labor Department reported that the number of first-time jobless claims declined to a greater extent than expected from a week ago. This situation could revive Wall Street and assure investors of the bullish momentum.
What is going on with the S&P 500? Ahead of the weekly update, the index dipped to 4,650. However, the good news on the labor market encourages a further uptrend. So the S&P 500 could climb to 4,720 in a couple of days.
Another reason for a further rally is the optimistic news from Texas. The policy of the US authorities on transferring key production facilities to the US has brought an important result. One of the leaders among manufacturers of electronics, Samsung, unveiled the plan to invest 17 billion dollars in production facilities in Texas. So, it will be the largest ever direct investment in the history of the state.
In this context, the US dollar index is extending strength. It is trading at about 96.75, 12-month highs before the long weekend. In the New York trade today, the index is likely to climb as high as 96.90. However, a correction will follow as soon as the peak is reached. Analysts foresee this scenario in the thin market during the long weekend.
The USD/CAD pair has halted its brief rise as oil prices are trading higher for the third day in a row. Now the currency pair is trading at near 1.2680. The expected corridor is between 1.2600 and 1.2720. The USD/CAD pair is set to trade flat for a while. However, with the firm US dollar, the currency pair will continue its growth.
Bitcoin is still trapped sideways at about 56,600 dollars. Apparently, it is going to trade this way for some time. Currently, the strong US dollar pushed investors into buying stocks, bonds, and other securities. Meanwhile, Bitcoin is taking a back seat. We are certain that the most popular cryptocurrency will appreciate to 60,000 dollars and eventually overcome it. This is a question of time.
That’s all for today. Today traders found out that the US trade balance deficit contracted last month. On the plus side, the US GDP grew a bit lower than expected. Nevertheless, this will not allow the stock market to tumble because it maintains strong bullish momentum.
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