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Canadian dollar advances despite rise in coronavirus cases

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Bank of Canada Tiff Macklem said Thursday that it is certain that the Canadian government will exit the pandemic with higher levels of public debt.

Last week, the Canadian dollar gained 1.45 percent against the greenback, advancing for the second week in a row.

USD/CADSo far, 180,179 cases of the coronavirus have been reported in Canada, while the death toll stands at 9,608. Due to the recent increase in the number of COVID-19 cases in certain zones, the Ontario government has implemented new restrictions, such as restricting indoor dining at restaurants and bars, as well as closing movie theaters, gyms and casinos.

Canada’s National Bureau of Statistics reported on Tuesday that imports reached 47.38 million in August, compared to 47.93 billion in the previous month. Exports reached 44.93 million in the same month after 45.4 billion in July. International Merchandise Trade, which records the difference in the value of Canadian goods imports and exports (excluding services), was -2.45 billion, well below analysts’ expectations of -0.29 billion and then -2.53 billion in the previous month.

The Richard Ivey School of Business released the Ivey PMI for September on Wednesday, which signaled a slower four-month expansion in the business sector to 61.1 after 64.6 in the previous month. The seasonally adjusted PMI was at 54.3, signaling a slower expansion since the previous month’s PMI was 67.8.

On Thursday, the Canadian Mortgage and Housing Corporation reported that the number of new residential projects fell to 209,000 (year-over-year), less than analysts had expected, as they had expected it to come in at 240,000 and after August’s 261,500 ..

Bank of Canada Tiff Macklem said Thursday that it is certain that the Canadian government will exit the pandemic with higher levels of public debt. He emphasized that without the fiscal and monetary policy measures that have been taken since the beginning of the pandemic, the economic devastation would have been greater.

However bold a policy response was needed, it will inevitably make the economy and financial system more vulnerable to future economic shocks.” said during a video conference with the financial risk management group, Without fiscal and monetary policy measures, the economic devastation of the pandemic could be much, much worse,” he added.

Macklem also noted that it will take a long time for the economy to fully recover, while asking the public to practice physical distancing to prevent the virus from spreading out of control and another lockdown.

On Friday, Canada’s National Bureau of Statistics reported that the unemployment rate fell to 9 per cent in September, less than analysts had expected when they expected a drop to 9.7 per cent and below the previous month’s reading of 10.2 percent. . The participation rate came in at 65 percent, up from 64.6 percent in the previous month, beating analysts’ expectations of 64.8 percent.

Average hourly wages rose 5.43 percent after 6 percent the previous month, while the Net Change in Employment came in at 378,200, up from the previous month’s figure of 245,800 and beating analysts’ expectations. to be at 156,600.

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