14.10.2020: Traders poised to sell USD (DJIA, USDX, USD/CAD, BTC/USD)

Futures on the US main stock indexes are rising amid better-than-expected corporate reports. The US dollar is asserting strength. The USD/CAD pair is trading at the upper border of the uptrend. Bitcoin is losing stream.
Futures on the benchmark US stick indexes are trading marginally higher on Wednesday as top American banks report upbeat quarterly results. Futures on the Dow Jones were 0.15% up. The Nasdaq futures rose 0.21%. Futures on the S&P 500 showed a 0.1% uptick.
Investors are closely monitoring financial records of the leading US banks. Revenue of Goldman Sachs Group surged 23% over the nine months of the year to about 33 billion dollars. At the same time, net profit shrank 22% to nearly 5 billion dollars. In the American pre-market, the bank’s shares climbed 2.4%. JP Morgan’s net profit dropped 39% on a yearly basis to 17 billion dollars. Citigroup’s net profit declined twice to 7 billion dollars in annual terms. All in all, the stocks of Wall Street banks went down almost 1%.
On the flip side, Wells Fargo & Co reported net losses of 932 million dollars for the first nine months of the year against a solid profit a year ago. The bank’s revenue contracted 17% to 54.5 billion dollars in the same period. As a result, Wells Fargo’s shares shed 1.5% in the American pre-market.
The US dollar is gaining ground across the board today. Its index is trading steadily at near 93.491. Most popular currency pairs are trading quietly. The pound sterling fell to 1.1865 against the US dollar amid worries about the Brexit deal but later it rebounded to 1.2950. The euro edged down 0.03% to trade at 1.174 against the greenback. The Japanese yen grew 0.11% to trade at 105.35 versus the US dollar. The Swiss franc rose 0.13% to 0.9137. The Australian dollar gained 0.15% to 0.7171 against its American rival. The kiwi was 0.26% up at 0.6665 against the US dollar.
The bulls shifted focus towards the US dollar in light of the news that pharmaceutical companies Johnson & Johnson and Eli Lill halted trials of their medicines for COVID-19. Investors are losing appetite for riskier assets due to fading hopes for the stimulus bill. House Speaker Nancy Pelosi rejected the proposal of the White House on the size of the financial aid. In response, Senate majority leader Mitch McConnell stated that the Senate would vote for a smaller package of fiscal measures. This program is about financial aid for American households, including a new salary protection program worth up to 500 billion dollars. In other words, if a smaller package is approved, a new wave of dollar selling will hit the market.
The USD/CAD pair is trading today at 1.1330 that the upper border of the uptrend.

Today bitcoin is retreating from the highest level of September. According to CoinMarketCap, bitcoin shed 0.65% to trade at 11,412 dollars per token. The most popular cryptocurrency sank 0.86% to 11,409 dollars on Binance, one of the largest crypto exchanges in trade volumes.
On Tuesday, the number one cryptocurrency jumped to 11,700 dollars, the level last seen on September 2. Later on the same trading day, bitcoin slowed down a pace of growth and closed with some losses.
Meanwhile, the presidential race is in full swing. American voters have to decide between ex-Vice President Joe Biden and incumbent President Donald Trump. The election will take place in three weeks. Recent nationwide polls reveal that Joe Biden is taking the lead. Investors believe that the stimulus package will boost a recovery of the pandemic-stricken economy. Biden’s victory is likely to strengthen the US currency because the Democrats will set the tone in the government. Their leadership is accompanied by the stronger US dollar. Nevertheless, everything could change after the next debate which is slated for October 22 in Tennessee.


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