USD/CAD Holds Steady As Initial Jobless Claims Fall to Fresh Pandemic Low

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The US dollar is holding steady on Thursday after the US government reported a fresh pandemic-era low in initial jobless claims as jobless benefits fade away. The greenback has weakened in recent sessions, struggling to sustain the momentum as investors pour into equities. The buck’s movement for the rest of 2021 might depend on the data and investor confidence.

According to the US Bureau of Labor Statistics (BLS), the number of Americans filing for unemployment benefits totaled 290,000 in the week ending October 16, below the median estimate of 300,000. This is also down from last week’s reading of 296,000, making this a fresh new low since the beginning of the COVID-19 public health crisis.

Continuing jobless claims declined to 2.481 million, while the four-week average, which eliminates week-to-week volatility slipped under 320,000.

Other US Labor Department data found that a record 4.3 million submitted pink slips amid 10.4 million job openings.

This comes after the Federal Reserve’s “Beige Book” found that retail, manufacturing, and hospitality comes had to slash hours or output because of a lack of workers.

In other economic numbers, existing home sales advanced 7% in September to 6.29 real estate transactions. The Federal Reserve Bank of Philadelphia reported that its manufacturing index plummeted to 23.8 this month. The Conference Board’s Leading Index edged up 0.2%, falling short of the market forecast of 0.4%.

The US bond market was mostly in the green toward the end of the trading week, with the benchmark 10-year yield up 0.04% to 1.675%. The one-year bill edged up 0.005% to 0.099%, while the 30-year bond climbed 0.032% to 2.143%.

The US Dollar Index (DXY) rose 0.03% to 93.58, from an opening of 93.56. The index, which gauges the greenback against a basket of currencies, is on track for a weekly loss of 0.5%, lowering its year-to-date gain to 4%.

The USD/CAD currency pair rose 0.09% to 1.2331, from an opening of 1.2320, at 14:21 GMT on Thursday. The EUR/USD dropped 0.07% to 1.1643, from an opening of 1.1653.

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