USD/CAD Falls, but Set to End Week Higher as Oil, Weak Data Hurt Loonie

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© Reuters.  © Reuters.

By Yasin Ebrahim 

Investing.com – The loonie climbed against the dollar, but remained on course for a weekly loss Friday, as oil prices slumped to multi-decade lows and data showed more than a fifth of Canada’s working population is now out of a job.

The latest figures the federal government about the Canada Emergency Response Benefit – launched to support workers impacted by the Covid-19 pandemic – showed 6.4 million people, or nearly 21% of the working-age population in February, applied for the program as the virus pandemic has shuttered nonessential businesses.

fell 0.38% to C$ 1.4023, but is poised to end the week higher.  

Canada’s economy has been dealt a blow by a flailing energy sector, a key contributor to jobs and overall growth in the country, amid a slump in oil prices on concerns about a glut in crude supplies.

Just a day earlier, the Bank of Canada detailed measures to help lower the costs of financing for provinces and pledged more support if needed.

BoC Governor Stephen Poloz noted that fiscal and monetary policy support will “put a floor under the economy and lay the foundation for the subsequent recovery,” but also acknowledged that in the near-term policymakers “can do little more than cushion the blow,” RBC said in a note.

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