01.07.2020: USD falters amid solid US data (USDХ, DJIA, WTI, USD/CAD)

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Wall Street finished the second quarter with the strongest dynamic in more than 20 years. Today the US stock market is gyrating that indicates uncertain market sentiment on the first day of the third quarter. The US dollar is trading quietly despite the fact that investors opt for safe haven asset. The market focuses on a series of macroeconomic data from the US.
In the early New York trade, futures on the Dow Jones were 0.34% down at 25,601. The S&P 500 shed 0.3% to trade at 3,090.38.
Despite rampant infection rates across the world, investors have spotted green shoots of recovery in the global economy. Today they will be able to judge the extent of the economic revival. The market is evaluating monthly surveys on manufacturing PMIs for leading economies. The highlight of the day is the US employment data from the ADP payroll processor.
The US private sector added 2 million 369 thousand new jobs in May. The figure undershot the forecast for a 3 million increase. Later today, market participants will analyze the minutes of the Fed’s latest policy meeting when the regulator expressed readiness to sustain interest rates at about zero for a few years ahead.
Yesterday, Jerome Powell said that the US economy is reviving faster than expected. Nevertheless, investors view his words as an attempt to soften the negative background. Further prospects will depend on how prompt the US authorities will be able to stamp out a new coronavirus outbreak.
Importantly, the Fed Chairman has not announced a new package of financial aid yet. It seems that the dollar bulls grabbed the chance to resist the bears who relied on a new portion of liquidity and hence depreciation of the greenback. At present, the US dollar index can climb and consolidate above 98.00 points.
Meanwhile, the US currency is trading quietly today. In the New York trade, its index ticked up to near 97.40.
The muted dynamic of the US dollar amid frustrating uncertainty prompt market players to analyze reasons. Some analysts admit that the US dollar could serve as a risky asset for the rest of the year.
The Canadian dollar has been unaffected by dismal GDP data. Canada’s GDP plummeted 11.6% in April, though such a slump was slightly better than the expected 12% contraction. So, the loonie dollar gained ground against its American rival. Today the USD/CAD pair is trading mainly sideways at about 1.3570. It was said yesterday that the currency pair is set to decline aiming to test 1.3510.
Energy investors are riveted to weekly updates on US oil inventories. Crude oil is trading moderately higher. WTI futures rose almost 3%, having surpassed the level of 40 dollars a barrel. The buyers loosened their grip in the evening. The official data from the US Energy Department will set the tone on Thursday.


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