30.07.2020: Donald Trump wants to delay elections (USDХ, DJIA, WTI, USD/CAD)
Futures on the US benchmark indexes are falling on Thursday. Investors are evaluating a series of macroeconomic data. The US economy showed the biggest quarterly drop since the Great Depression. The US dollar made faint attempts to rebound. However, dismal fundamentals assure traders that the time is still wrong for long deals.
The lockdown measures imposed by the US authorities to contain the coronavirus rates crippled the national economy in the second quarter. The US economy plummeted at an annual rate of 32.9%. The number of unemployment claims increased by 12,000 last week. Weekly updates on first-time jobless claims log growing numbers for the second week in a row. This is evidence that a recovery is slowing down, especially in the Southern and Western states.
Futures on the Dow Jones accelerated a decline after the statistics had been released. The index slipped 1.3% below 26,115. Futures on the S&P 500 also shed over 1%. Now the S&P 500 is 4% down from its February’s high.
Besides, Congress has not passed the long-awaited stimulus package that adds to the overall pessimism. The US lawmakers have not come to the common denominator yet. Importantly, the ongoing stimulus program is due to expire in July. So, the economy could lack support since August 1.
Today market participants are anticipating financial reports from US hi-tech giants like Apple, Amazon, and Facebook.
The US dollar index is again trading in the red after a minor upward correction in midday. The greenback hit a new low of 93.22 against a basket of six major currencies.
Another reason behind the US dollar’s weakness is remarks from the White House. Donald Trump suggested that the presidential elections should be postponed despite the fact that only Congress has the authority to change the date. “2020 will be the most INACCURATE & FRAUDULENT Election in history," Donald Trump tweeted. From his viewpoint, Americans are not able to make an unbiased decision.
The USD/CAD pair halted its upward move, having climbed 100 pips in no time. Nevertheless, the correctional climb is not over. In case the pair holds firmly above 1.3468, the door will be open towards 1.3715. On the whole, the USD/CAD pair is drifting lower towards 1.3315.
The risk-off mood affected the oil market. Oil prices are trading firmly lower. WTI sank below 40 dollars a barrel, having lost over 3%.
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