The Canadian dollar is close to unchanged this morning and still trading at the highest levels seen since the beginning of the global lockdowns. By far the biggest story in the forex markets continues to be the very significant weakness in the US dollar, which is being blamed on the poor handling of the virus in that country, which in turn is seen as requiring a very accommodation monetary policy for a very long time. There are also longer term worries about the US dollar’s status as the world’s reserve currency. On the bright side for the US, weekly jobless claims hit their lowest level of the pandemic area, totaling 1.2 million last week, well below Wall Street expectations. The falling US dollars, and the increase in real estate prices in Canada, are an emerging dilemma for the Bank of Canada.
