Lonnie lower on US jobless claims
Thursday 9 July, 2020
Daily Currency UpdateCAD - Canadian DollarThe Canadian dollar decreased in value against the US dollar this morning after US jobless claims were lower than expected. Economists forecast 1.37 million claims, and the US Department of Labor reported 1.31 million unemployment claims. The number of new unemployment claims in the US has decreased each week since April 9. It’s a positive sign for the dollar when unemployment figures come in less than the forecast. As we’ve seen the market fluctuate each week, unemployment claims are one of the earliest economic indicators.However, yesterday’s report on US oil inventory stockpiles also impacted the trading power of the Canadian dollar. With more oil in inventory than previously reported, the demand for new crude decreased. As such, the price of oil has dropped, along with the demand for the Canadian dollar.
Key MoversThe Great British pound rallied through trade on Wednesday, pushing through 1.26 following news of a new 30 billion-pound fiscal stimulus package. Chancellor of the Exchequer Rishi Sunak unveiled plans for the new fiscal support program. It’s designed to drive and support the property market, while underpinning key retail and service sectors. He proposed it will provide tax incentives for employers to hold onto employees through this crisis. The plan is the next stage in the government’s fiscal response to the economic destruction caused by COVID-19, fueling market demand for the GBP.The euro was dragged higher by Sterling’s upturn, pushing back through 1.13 to touch intraday highs at 1.1330, while the USD tumbled to a two-week low. Reduced haven demand drove commodity currencies higher, while extended fiscal stimulus helped support the GBP and euro. These move members forced the DXY dollar index half a percent lower. With the US still the epicenter of the world’s fight against COVID-19, investors are conscious that the world’s largest economy faces a protracted recovery period, fueling demand for other asset classes with nothing but haven demand propping up the world’s base unit.
- USD/CAD: 1.349 - 1.357 ▼
- GBP/CAD: 1.703 - 1.713 ▼
- EUR/CAD: 1.528 - 1.535 ▲