A steady rally on Wall Street is resting on market optimism. The US dollar is regaining footing on Monday. The Canadian dollar is trading steadily against its American rival. Bitcoin is trading marginally higher.
Futures on the benchmark US stock indexes are growing on Monday amid optimism around a new stimulus bill for the US economy. Besides, traders are anticipating a season of corporate reports by leading US companies.
Futures on the Dow Jones edged up 0.03%. The Nasdaq rose 1.44%. The S&P 500 gained 0.48%. Wall Street has been extending a rally for the fourth session in a row.
Traders still hope that the US lawmakers are about to pass a new stimulus package. Earlier in October, US President Donald Trump postponed the talks with the Democrats on extra financial aid for the US economy until the presidential election is over. However, later the White House confirmed that the talks are still in progress. Donald Trump advocates for the package of 1.8 trillion dollars, but House Speaker Nancy Pelosi insists on a bigger amount of 2.4 trillion dollars.
The presidential election slated for November 3 assures Congress to hurry up with the stimulus measures amid the growing likelihood that Democratic nominee Joe Biden will win the election.
Besides, investors are shifting focus towards the season of corporate financial reports which is due this week. Tomorrow investors are alert to records of the two large banks, JP Morgan and Citigroup. There is a hope that American companies have been able to meet the challenge and will report upbeat corporate earnings. If so, strong reports will support their stocks.
In the early New York trade, the US dollar index advanced 1% against its six rival currencies to trade at 93.108.
The euro/dollar pair is 0.1% down. The dollar/yen pair also slipped 0.1%. The pound/dollar pair is trading sideways. The risk-exposed AUD/USD pair declined 0.2%.
On Friday, the US dollar was weighed down as investors were betting on new stimulus measures. However, standoff between the lawmakers is still going on. The Democrats affirm that the package size suggested by Donald Trump is not enough. At the same time, the Publicans are unwilling to let the federal debt balloon.
The USD/CAD pair is gyrating at around 1.3 with price swings of 10%. This proves stability of the Canadian dollar.
On Monday, bitcoin is trading marginally higher heading for the level of 12,000 dollars per token. According to CoinMarketCap computing a median price on the grounds of data from over 20 crypto exchanges, today bitcoin grew 0.21% to 11,384 dollars. The number one cryptocurrency gained 0.34% to trade at 11,389 on Binance, the largest crypto exchange in terms of a trade volume. Co-founder of the Gemini crypto exchange Tyler Winklevoss foresees that a tsunami of institutional investors is about to flood the crypto market.
Citing his words, a few large companies have already invested in bitcoin. On October 8, the Square payment firm established by Twitter founder Jack Dorsey spent 50 million dollars to buy bitcoins.
Earlier in September, MicroStrategy, a provider of analytical software, purchased bitcoins to the amount of 425 million dollars.
Global Macro Investor CEO Raoul Pal invested more than 50% of his capital in bitcoins, betting on its stellar rally to 1 million dollars within 5 years. He also believes that the crypto market will be flooded by institutional investors who realize that the economic recovery in the wake of the pandemic will last longer than
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