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22.01.2021: US stocks taking pause after recent rally (DJIA, USDX, USD/CAD, BTC/USD)

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The US stock market is taking a break after its recent record-setting rally. On the contrary, the US dollar inched up after three straight days of losses. Bitcoin is taking a nosedive.
The US benchmark stock indices are making a downward correction. The Dow Jones fell 0.73%. The Nasdaq slipped 0.55%. The S&P 500 shed 0.65%.
A correctional decline comes as no surprise as such a pause is imminent after all key indices hit record highs earlier this week.
Meanwhile, there are no factors which could push the stock indices down. Apparently, stock investors decided to pause for breath amid the steady rally for the most part of January.
Investors welcomed first corporate reports of top American companies. Curiously, some market participants are concerned about over-optimistic corporate earnings in a number of sectors.
In the meantime, traders are cautious in anticipation of policy updates from the Federal Reserve which will be announced next week. Market participants await financial records from high-tech giants such as Facebook, Apple, and Tesla in the near time.
Interestingly, some analysts have the bullish outlook for the US dollar, although most experts warn that the greenback is doomed to protracted weakness.
The US dollar index has been firmly trading at the level slightly above 90 points for almost a month after the tough 2020 year. The US currency has been weighed down by the prospects of large-scale cash injections into the US economy, proposed by Joe Biden. On the plus side, the US dollar is sure to benefit from a sharp revival of business activity which will follow after fiscal stimulus measures are actually launched.
The US dollar perked up during the European trade today within the overall downtrend. Traders are betting on the rapid economic recovery in the wake of the pandemic-driven crisis.
The US dollar index rose 0.21% against a basket of six major currencies to trade at 90.26. Nevertheless, the index logged a weekly loss of 0.6%.
The US dollar is advancing against its Canadian counterpart. Having gained 0.58%, the USD/CAD pair is trading higher at near 1.2706.
Yesterday, on January 21, bitcoin tumbled to the level below 30,000 dollars per token, the lowest price seen since January 4. Today, the number one digital currency is trading at 31,421 dollars. According to CoinDesk, the tracker of data from 20 crypto exchanges, bitcoin sank to 29,390 dollars yesterday following a dazzling rally in early January. Today its price is correcting upwards. Such a plunge has nothing to do with macroeconomic situation in the world. Apparently, this comes from profit taking by large investors.
Due to soaring daily numbers of new coronavirus cases in the US, Joe Biden intends to step up efforts against the pandemic. The President fears that the death toll could be as high as 100,000 infected people next month.

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