09.10.2020: Investors anticipating Biden’s victory (DJIA, USDX, USD/CAD, BTC/USD)

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Futures on the US stock indexes are trading higher. In Friday, the US dollar is extending weakness. It lost 0.35% against a basket of six rival currencies. The Canadian dollar is holding the upper hand over its weak American rival. Today bitcoin has surged over 2%.
The rally on Wall Street is propped up by positive news on the stimulus bill as well as fading political jitters amid the presidential race in the US.
Futures on the Dow Jones rose 0.41%. The Nasdaq was 0.44% up. Futures on the S&P 500 grew 0.44% in the early New York trade.

Positive sentiment is setting the tone across US financial markets for the second day in a row amid statements by the US President. Earlier this week, Donald Trump called on Congress to pass the bill on financial aid for air companies and small businesses.
Both the Democrats and the Republicans agree that the US economy urgently needs stimulus measures because a fragile economic recovery could come to a halt in the short term. Yesterday, Donald Trump revived hopes that US lawmakers will approve the stimulus package soon that propels a rally of stock indexes. Besides, investors are closely monitoring developments in the presidential race. Meanwhile, Democratic presidential nominee Joe Biden is taking the lead. His victory in the election will ensure support to small and medium-sized companies that will encourage a further uptrend of the US stocks.
The US dollar is on track to finish the second straight week with losses. One of the reasons behind the greenback’s weakness is that investors are increasing bets on Joe Biden’s victory. Another reason is anticipation of extra stimulus measures.
Economists at some Wall Street banks expect the government to pass a series of stimulus measures, no matter who will win the presidential election. According to one popular viewpoint, in case Joe Biden wins the vote and the Democrats regain control over the US Senate, stimulus programs will expand notably.
The US dollar index is 0.35% down today. At the same time, the mainland yuan gained 1.34% while the offshore yuan grew 0.75%.
The Chinese currency is benefiting the most from the growing likelihood of Joe Biden’s victory. Today the yuan has shown the sharpest intraday growth for over four years. China’s markets opened today following a week of national holidays that also accounts for the yuan’s strength.
The Australian dollar advanced 0.53% to 0.7204 against the American peer. The kiwi is also 0.88% up to trade at 0.663 versus the greenback. The yen showed a 0.12% uptick to trade at 105.88 against the US dollar. The euro grew 0.39% to 1.1804 versus the dollar. The sterling climbed 0.2% to 1.2958.
Meanwhile, the USD/CAD pair is trading lower amid a weaker US currency. In the European session today, the pair was trading at near 1.3165 heading for the key support of 1.3125.
The economic calendar today sheds light on high volatility of the USD/CAD pair. The report of major important is data on Canada’s labor market for September. Investors are also interested in a weekly oil rig count in the US from Baker Hughes. A decrease in the number of drilling rigs could encourage growth of oil prices and the Canadian dollar, but this positive impact will be short-lived.
Following a decline earlier, bitcoin surged 2.28% today to trade at 10,870 dollars. The number one cryptocurrency dropped on Tuesday due to political uncertainty ahead of the US presidential election and the coronavirus resurgence. Bitcoin has been picking up steam since Thursday.
Yesterday, the cryptocurrency spiked 2.4%. Today it is extending a rally, though at a bit slower pace.
Interestingly, experts at UBS are giving odds of 75% that Joe Biden will be elected the next American President. His lead in national polls calms down market turbulence. Importantly, volatility across US markets is waning in anticipation of the election date. It proves that the market is confident and pleased about the outcome.

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