The Canadian dollar is moving forward with difficulty in early Toronto trading. FX volumes are significantly reduced because of holidays around the world. Australia, New Zealand, most of Europe, and the U.K. were closed Friday and again today for Easter Monday. China and Hong Kong markets were shuttered for national holidays.
Friday, the U.S. dollar released a stellar employment report. Non-farm payrolls rose 916,000 in March compared to the forecast for a 647,000 gain. The NFP results for January and February’s data were revised higher as well. Economists expect a similar result for April, and if the trend continues for the rest of the year, the Fed may be forced to raise interest rates far earlier than they expect.
The pace of coronavirus vaccinations in the U.S., combined with the massive stimulus spending announcements, is expected to fuel a robust, consumer fueled economic recovery, which will help lift the global growth outlook.