US indices declined yesterday, albeit very moderately.
Meanwhile, the Asian markets rose this morning, with China gaining approximately 0.5%, and Japan jumping by 0.9%.
Oil also rallied, taking advantage of the optimism in the stock market.
But the risks brought by the coronavirus remains, especially in Europe. In fact, infection rate continues to accelerate there, and the latest figures almost reached the peak records last January. With regards to vaccination, the pace is still slow, especially in France, Germany and Italy. Large outbreaks are also seen in Poland and Ukraine.
Forecasts:
The DJIA is currently at 33.750 points, but it is expected to grow today and range between 33.500 - 34.000.
As projected, the USD index hit 92.20 points and is forming a strong bottom just below 92.00. Strong growth should follow, but it will depend if US Treasury yields increase from the current 1.6%. In any case, the index is forecasted to range between 91.80 - 92.60 today.
USD/CAD currently costs 1.2580. Like yesterday, it is projected to remain between 1.2450 - 1.2680, at least until the sentiment changes in the US market.
Conclusion: New growth attempts may occur in the US market, but be prepared in case of a large correction.
