Though at a slow pace, the Canadian dollar is currently hot on the USD’s heels as investors anticipate the next employment report.
So far, the CAD has grown steadily, even though the nation continues recording the highest per-day jump in Coronavirus cases since wave 2 of the pandemic kicked off.
Analysts believe a steady increase in employment may bring a sigh of relief helping exceed the fortnight high.
Analysts predict a cutback in unemployment.
Canada’s unemployment rates for the previous release dipped slightly to 10.2 percent in Aug from 10.9 percent.
Following a strong boost in May unemployment rates (13.9 percent), the out-of-work rate has fallen steadily over the previous four months.
At the moment, estimates show the jobless rate will dip to 9.7 percent whereas the net change in job hires will likely indicate that Canada made new 156.6K jobspots from the 245.8K recorded in August.
The nation may record further growth if wage growth and employment rates in the labor sector goes up.
This continues in the heat of Wave 2 of COVID-19 as Canada records the highest per-day count in coronavirus cases. In the last week of September, Canada reported 14,099 new infections, a 37 percent jump from the week before.
Government Rolls Out a Fresh Budget
Canada’s global trade growth stagnated in August, the latest proof that the economy is entering a slow phase even after the easing of COVID-19 restrictions.
The Canadian government went public with a $10 billion infrastructure strategy towards its economy to help encourage recovery and growth.
Investing in the latest infrastructure dominates the federal government’s latest ‘Growth Plan’ in tandem with the federally-owned Canada Infrastructure Bank.
The proposed plan will allocate $2 billion to install high-speed broadband in over 750,000 homes and workplaces. In response to the COVID impact, the government looks to improve rural connectivity as lockdown restrictions have pushed schools, offices, and businesses to operate remotely.
The trade deficit for Canada reduced slightly to 2.4 billion in Aug from $2.5 billion in July, according to the National Statistical Agency, with imports and exports steadying off almost half-a-year into the COVID-19 crisis.
Economists see this as a red flag indicating that Canada’s post-pandemic economic recovery rate has slowed down.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated Canadian merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.