Sentiment, which was already slightly negative this morning, has taken a turn for the worse with the release of data showing that the number of people filing for unemployment benefits in the US last week was greater than expected. That came after yesterday’s release of the Fed minutes which showed that the US central bank remains quite pessimistic about the state of the economy but chose not announce any new expansive measures. All in all, since yesterday morning, the US dollar has gained 0.7% on the Canadian dollar. We could see additional USD strengthening as the market absorbs the negative news and gravitates towards safe-haven assets like the Greenback and away from “risk” currencies like the Loonie.
