The Loonie is trading around the 1.2650 price line, down 0.38%, as sentiment improves despite its strong correlation to oil prices. WTI is down 0.25% on Thursday.
On Wednesday, the Bank of Canada maintained its overnight rate unchanged and maintained its bond purchasing program at CAD 2 billion per week. Though this was seen as dovish for the market, with the Canadian dollar weakening, the main driver is now the greenback’s behavior.
Looking at US economic calendar, the US Initial Jobless Claims for the week ending on September 3 came at 310K against 335K expected by analysts. Its 4-week moving average decreased from 356K to 339.5K.
The increase in the labor market is credited to an acceleration of the covid-19 vaccine rollout and higher workers’ demand amidst easing lockdown measures. Though the unemployment claims lessened, most analysts expect slower economic growth by the third quarter.
Later in the day today investors will be waiting for the Canadian Employment change and unemployment rate and the US Producer Price Index (PPI).
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.