USD/CAD Continues to Drop Amid Jobless Claims of 411,000
The USD/CAD pair is trading at $1.22 today, down about 0.26%. This is a pair that trades very rapidly and is constantly shifting, yet is still on a downward trend for the week.
A report on weekly jobless claims isn’t helping the US economy look any better than it has over the past few weeks. It has been a slow struggle to recover from COVID-19 across the country, though recovery efforts differ from state to state.
The weekly jobless claims report shows 411,000 for the week, with that data showing claims up until June 19th. That’s lower than the last period’s 418,000 and continuing jobless claims have gone down to around 3.4 million. The estimated jobless claims number was about 380,000, so when the actual data came in and showed worse numbers, that kept the USD/CAD on its downward path.
The US economy is up in other ways, however. Big ticket item spending is up 2.3% from May, which is the biggest increase seen since about this time last year. A lot of that is likely spurred by recent stimulus checks the government has sent to its citizens. Even more stimulus money is expected in the near future, with child tax credits supposed to be paid out within the next few weeks.
A Look at the Canadian Economy
Conversely, the loonie was trading at 81.15 cents to the US dollar. It fell drastically in the previous week, but it’s improved by 1.1% since the beginning of this week.
North American markets are still trying to process the FOMC guidance from last week which had a hawkish outlook. Canada has benefited from US spending and the stimulus checks injected into the economy there, as US businesses have purchased large numbers of copper and oil products from Canada. However, copper fell while oil saw a 0.3% increase, ending at $70.30.
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