The Canadian dollar in the second part of the day boosted profits from the whole week. The USD/CAD exchange rate thus reached its lowest levels since mid-September. On the one hand, the Canadian currency seems to be supported by rising oil prices and on the other hand by macroeconomic data.
Today, the unemployment rate in Canada fell to 9 percent in September from 10.2 percent in August. The market expected a reading of 9.7 percent. The unemployment rate fell for the fourth month in a row. However, it is still well above pre-epidemic levels, when it was about 5.5 percent. 378.2 thousand jobs were added to the Canadian economy, exceeding the forecast of 156.6 thousand.
Surprisingly positive employment data in Canada along with rising oil prices due to the hurricane may cause a significant strengthening of the Canadian dollar. The USD/CAD exchange rate fell from about 1.3300 to 1.3140 this week, the second week in a row when rates seemed to end the correction in the region of 1.3400, making the Canadian dollar one of the stronger currencies in recent times.
In the United States, stock futures in the US are rising on Friday, prolonging the upward movement for the third session in a row. This is potentially due to renewed hopes for another fiscal package. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin talked on the phone. Mnuchin said that President Trump is interested in getting agreement on a comprehensive aid package.
On the political front, Joe Biden continues to lead the polls before the US presidential election.
This week Dow rose by 2.7 percent and S&P by 500 2.9 percent. Nasdaq increased by more than 3 percent on the way to its third consecutive week of growth.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.