02.07.2021: US stocks at all-time highs (S&P500, DXY, USDCAD, BTCUSD)

The US economy is carrying on with a robust recovery. The benchmark stock indices continued a rapid rally and hit all-time highs yesterday. The number of US unemployment claims eventually began to decline. Today investors found out that the unemployment rate edged up 0.2% in June, defying expectations for a decline.
This disappointment means that the US dollar could tumble a bit for a while. It will impact on the currency pairs in which the US dollar was setting the tone lately. Nevertheless, weakness of the US dollar is going to be short-lived as there are preconditions for its new highs.
The US key stock indices are extending their winning streak. Yesterday, the S&P500 gained 0.5%. The index which embraces both stocks of hi-tech and established companies climbed to 4,320. Judging by the ongoing dynamic and recent macroeconomic data, the S&P500 is capable of resuming a rally after a short pause or a downward correction. The index is expected to hold in the corridor of 4,280 to 4,360.
Meanwhile, the authorities worldwide are overhauling the taxation principles for large international corporations. In the first place, Internet and hi-tech giants will be subject to these changes. Apple, Google, Amazon, Facebook and similar companies will have to pay at least 15% of profits in the countries where they earn such profits regardless of the country of their incorporation. This common policy has been adopted by the G7 countries. 130 other countries followed suit quickly.
The US dollar index has been hovering at high levels since early April. The US currency finds solid support from the robust economic recovery. Besides, the greenback pins hopes on rampant inflation in the US. In turn, a surge in inflation cements expectations for a rate hike by the Federal Reserve. Meanwhile, the US dollar index is trading at near 92.60. It is likely to hold in the corridor of 92.10 to 92.60. Experts do not rule out its downward retracements. That is what is going on in the meantime. The reason is the higher-than-expected jobless rate.
Yesterday, the US dollar advanced against its Canadian peer to the high seen on June 21. The USD/CAD pair is trading at about 1.2440. However, today the greenback lost some footing in light of the US nonfarm payrolls. At the same time, the loonie has regained some losses. The currency pair is expected to trade in the corridor of 1.2350 to 1.2400 depending on the market response to new economic data from the US.
The cryptocurrency market has come to a standstill. Bitcoin has been trading in a narrow range at the level slightly above 33,000 dollars. Recently, no important news has been released on the crypto front. No wonder, the whole market is trading with a low dynamic. From the technical viewpoint, Bitcoin is trading without a clear-cut trend as it is difficult to define support and resistance levels. Hence, the number one cryptocurrency is set to trade in the range of 23,500 to 34,500 dollars until important news appears.
Now let’s draw a conclusion. The US stock market is closing this trading week at new historic highs. This comes as no surprise. Indeed, the vaccination campaign in the US has proved to be a success. Coronavirus rates are keeping low. The domestic economy has gained strong momentum. On the other hand, this optimism has been already priced in in current assets’ prices. It means that the market is likely to make a deep downward correction in case of negative economic data or fresh evidence of inflation acceleration. When this tipping point comes, we will share our forecasts with you. Stay tuned!

00:00 Рынок США — на максимумах
00:27 US Unemployment Rate
00:50 S&P500
01:29 Large companies tatxation change
02:08 DXY
02:58 USD/CAD
03:33 Bitcoin
04:16 Results

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