FX.co ★ 04.03.2021: USD trading firmly higher (DJIA, USDX, USD/CAD)

Futures on the US stock indices are slipping ahead of a speech by the Fed’s Chairman. The US dollar is holding gains against most major currencies. However, it is giving in to the Canadian dollar.

Futures on the US stock indices are trading lower. The Dow Jones edged down 0.05%. The Nasdaq shed 0.29%. The S&P 500 logged the most losses of 1.31%.

Yesterday, the benchmark stock indices lost 2% on average. The Nasdaq suffered the steepest fall since late January.

Market participants are playing safe ahead of the speech by Fed’s Chairman Jerome Powell. They are eager to find out if there is any change in his assessment of the domestic economy in light of the vaccination campaign.

Earlier, the central bank noted that the nationwide mass vaccination inspired optimism about a rapid economic recovery. Importantly, economic activity regained momentum in most states from January until mid-February.

Besides, none of influential Fed officials has voiced concern in public about a chaotic sell-off in Treasuries from the start of the year. The US regulator says that weak employment is the main cause for alarm.

The US dollar index is trading firmly higher in anticipation of the Fed leader’s speech. Having gained 0.20%, the index is now trading at near 91.16.

At the same time, the US dollar lacks confidence against its Canadian counterpart. The USD/CAD pair shed 0.02% to trade at about 1.2645.

Later today, the US Labor Department is due to release a weekly update on unemployment claims for the last week as well as data on labor cost and productivity for the fourth quarter. The highlight of the day is a speech by Jerome Powell who will take part in an online conference of The Wall Street Journal.

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