U.S. equities traded lower on worse than expected unemployment claims, even though the number is still off from the earlier unemployment claims of 6.9 million, analysts believed that the economy was starting to turn for the better. Economists thought that this would be the turning point as many states are reopening giving the economy a floor.
However, against this backdrop the number of Covid-19 cases continue to grow particularly in the southern U.S., Arizona and Texas are seeing record number of cases. This news added to the drop in equities on fears of this resurgence.
The Canadian dollar has traded weaker on the weaker U.S. data, oil prices went against market sentiment, the oil market rallied as activity picks up in countries emerging from lockdown, though concerns remain that a resurgence in coronavirus cases in China and the U.S. will curtail the demand recovery. Also, Iraq has promised to stop cheating on its limits which seems to have given oil a bottom on its pricing. Expect further volatility.
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