Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, MB, August 4, 2016 (CNS Canada) The Canadian dollar strengthened against its US counterpart Thursday morning, supported by the Bank of England’s interest rate cuts and less than favourable US jobs data.

The BoE cut its key interest rate to 0.25 per cent from 0.5 per cent on Thursday, marking a new low in the central bank’s 322-year history.

The cut is one of the measures being taken to stimulate the UK economy post-Brexit and lessen the blow of a slashed growth forecast for next year.

The number of Americans filing for unemployment also rose unexpectedly on Thursday, according to the US Labor Department, supporting the loonie.

Economists had expected 265,000 new claims in July, but the month ended with 3,000 more applications at a seasonally adjusted 269,000 claims.

The US Labor Department said no special factors affected the rise, and levels remain consistent with steady hiring, liming gains.

At 9:24 CDT Thursday, the Canadian dollar was at US$0.7661 or US$=C$1.3053, which compares with Wednesday’s North American close of US$0.7651 or US$1=C$1.3071.

The TSX was down 37.0 points, or 0.25 per cent, at 9:24 CDT Thursday morning to sit at 14,475.05.