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Canada's Labour Force Hit Hard by Covid-19

CAD - Canadian Dollar

North American equities posted their worst week since the global financial crisis with the S&P 500 falling to its lowest level in three years, ending the week 15% down. WTI is down 31.32% on the month, U.S. crude oil futures were down another 1.5% at $22.35 a barrel. This comes on the back of a flurry of emergency packages from G-7 central banks intended to buffer economies and financial markets against the global economic shutdown triggered by the coronavirus pandemic.
Canada's labour force saw jobless claims reach half-million, which represents 2.5 percent of the labour force is a concerning signal of how deep a rut Canada's economy is in. This rise in layoffs would suggest that even after unveiling plans to inject billions in direct aid and liquidity into the Canadian economy, Trudeau and policymakers will need to add more. Other measures to combat Covid-19 would be another interest rate cut by the Bank of Canada that could materialize in the coming days.

Key Movers

The U.S. faces a wave of jobless claims as states from Ohio to Pennsylvania saw a surge in the number of people who have been laid off in recent days, overwhelming state labour agencies as cities shut down to halt the spread of the coronavirus. A report last Thursday showed a steep rise in claims for unemployment insurance; 281k, up from 211k the previous week. The initial report means that the U.S.'s unemployment data due out early next month could weigh heavily on the economy and the USD.
Asian stocks Monday tumble and US S&P futures dropping 5% in the open, hitting another "limit down" amid a pick up on deaths from the virus and a lack of agreement by the U.S. Government on an Aid plan. The USD lost some ground against the JPY, EUR and GBP but is still trading very strong against emerging market currencies. NZD announced they'd start buying bonds to stimulate the economy, and the Indian rupee reached a new low against the USD after the country also announced a lockdown.

Expected Ranges

USD/CAD: 1.4347 - 1.4491 ▲

EUR/CAD: 1.5322 - 1.5476 ▲

GBP/CAD: 1.6637 - 1.6920 ▲

AUD/CAD: 0.8238 - 0.8418 ▲

NZD/CAD: 0.8086 - 0.8264 ▲