Unemployment claims in the US remain depressed as the Fed battles inflation

Wall Street remains bolstered by an upbeat mood. Investors had digested words from Janet Yellen, the US Treasury Secretary, who said that the United States (US) government is not planning to introduce blanket insurance to all depositors. However, a dovish rate hike by the Fed improved risk appetite.

Data-wise, the US economic docket featured Initial Jobless Claims for the week ending on March 18, which fell by 1,000, to 191,000 below estimates of 201,000. That reinforced the Fed’s view of a tight labor market and warranted further action by the US central bank. At the same time, the Chicago Fed National Activity Index for February plunged to -0.19 vs. the prior’s month 0.23

In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of six currencies, continues to stumble and is down 0.31% at 102.213, undermined by falling US Treasury bond yields.

Therefore, the Canadian Dollar (CAD) is being boosted by a softer US Dollar and high oil price, with Western Texas Intermediate (WTI) rising above the $70.00 a barrel threshold, for the first time since March 15. Therefore, the USD/CAD is set to continue to fall as the US Dollar continues to weaken.