US jobless claims fell below 500K, a psychological level for investors, equities have reacted positively and so has the Canadian dollar. The Dow is up 200 points while the TSX is unchanged, commodities are mixed but lumber still continues to surprise everyone, this morning it’s up 4%, up nearly 400% year over year. Canadian provinces who have large lumber revenues will find this as unexpected windfall, hopefully lasting longer than the pandemic.
The Canadian dollar is stronger on the lumber and the US economic data, this will become a problem for the Bank of Canada if it continues, it may have to retract on interest rate hike comments, as the strength in the CAD may cause exports to fall and the economy to contract.
Currently* Close Range
USDCAD 1.2188 1.2264 1.2181-1.2288
EURCAD 1.4695 1.4723 1.4694-1.4766
GBPCAD 1.6928 1.7051 1.6925-1.7071