Futures on the US benchmark stock indexes are trading mainly higher. Besides, the US dollar is extending strength against a basket of six major rivals. The greenback hit the highest level in two months amid fears about the second pandemic wave which is especially painful in Europe.
Today the US stocks are regaining footing in the New York trade. Investors are absorbing corporate news awaiting a series of PMIs on the US economy. Futures on the Dow Jones grew 0.73%. Futures on the Nasdaq showed a 0.02% downtick. Futures on the S&P 500 were 0.35% up.
Stock investors are responding to the corporate news. The stock of Nike, the US sportswear company, surged over 12% in the American pre-market following an upbeat corporate report. The company boosted its net profits by 11% in the first quarter in annual terms. The stock of the Yandex Internet giant traded on Nasdaq soared 5% in light of the news on the expected purchase of online bank Tinkoff.
The US dollar index grew 0.15% to 94.132, the strongest level in two months. According to analysts at Commerzbank, the market sentiment is dampened by concerns over the coronavirus resurgence, above all in Europe. This means that the US dollar is in demand again. At the same time, traders should not neglect uncertainty about the outcome of the presidential election in the US. Thus, there are weighty arguments to foresee even higher volatility of the US dollar.
Meanwhile, the USD/CAD pair is carrying on with the uptrend. The loonie weakened to 1.3326 against its American peer.
Nevertheless, analysts caution traders against robust buying the US currency on the back of the coronavirus-related threats and the upcoming presidential election in the US. Experts warn that the second pandemic wave could make a serious impact on the election outcome. For this reason, the market has been hesitant about the US dollar in the last few days.
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