Canadian Dollar Makes Gains As The Greenback Sells Off.
Thursday 26 March, 2020
Daily Currency UpdateCAD - Canadian DollarThe Canadian dollar strengthened against its U.S. counterpart as market participants sold off U.S. dollar positions ahead of the U.S. Department of Labor weekly jobless claims. At the 8:30 am release time, claims soared to their highest level ever to 3.3 million. The silver lining is that the system did not breakdown with the overload of claims, and individuals that filled will get the assistance they need. WTI Oil is down 4.70 percent to $23.40 per barrel and gold continues its move higher by 1.56 percent to 1631.60.The U.S. signed off a $2 trillion rescue package last night that will provide support to individuals, businesses and medical centers hit by the Coronavirus outbreak. Reports state that persons with an income of less than $75k a year will receive cheques for $1200 with children receiving $500. After two days of debate, the bill was unanimously signed off by the senate so that America can fight a situation that is deteriorating rapidly. New York state has been particularly severely affected, with close to 30k cases being confirmed and 368 deaths reported. The doubling of cases in two days should sound alarmed to many at The White House; however, President Donald Trump has recently said he wants America back to work by Easter, which looks like it will be a stretch, to put it mildly.
Key MoversThe European Central Bank has announced an unlimited QE programme to shore up the Eurozone economy as deaths surge across the continent. Spain has now overtaken China to be the second-worst affected by way of deaths, with 3434 now confirmed to have succumbed to the virus. Italy recorded another 683 deaths taking its total to over 7.5k with around 75k cases confirmed. The glimmer of hope is that the rate of infections has now fallen for four straight days.India has announced a lock-down of its residents, meaning around 1.3b people have restrictions over their movement, it is estimated that a quarter of the planet's population are now living under such rules.EUR/USD trades at 1.0930, USD/JPY is back under 110. AUD/USD is back under .60 and USD/NZD around .5850 as stock markets slip back a little after the huge gains seen Tuesday and Wednesday.
- USD/CAD: 1.4095 - 1.4223 ▼
- EUR/CAD: 1.5425 - 1.5586 ▼
- GBP/CAD: 1.6816 - 1.6989 ▲
- AUD/CAD: 0.8365 - 0.8545 ▲
- NZD/CAD: 0.8222 - 0.8363 ▲