In the FX market, the U.S. Dollar lost ground against other major currencies on Thursday after rising unemployment claims. New data released yesterday showed that initial jobless claims have reached their highest level since October 2021 in the U.S.
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In the meantime, gold managed to recover early losses after finding strong demand near the $1940 level which represents the short-term support for the yellow metal. Prices reached a high of $1970 per ounce, however, the key resistance remains at $1985 and a breakout above it is needed to confirm that the recent downside correction has ended. Otherwise, the trend is expected to remain neutral ahead of the upcoming FOMC rate decision due next week.
In the U.S. stock market, all three major averages closed higher as traders await inflation figures alongside the FOMC rate decision next week. The Dow rose 0.5% marking its third straight day of advance, the Nasdaq composite gained 1.02% while S&P500 advanced 0.62% to close at a new high for 2023.
Looking at today’s calendar, the focus will be on Canadian employment figures. The Canadian economy is expected to have added 21.2K new jobs compared to 41.2K registered previously.
Finally, analysts are expecting Canada’s unemployment rate to rise from 5.0% to 5.1%