USDCAD: Loonie surges despite record unemployment numbers

The Canadian dollar, also known as the Loonie, surged 100 pips from its daily lows, and the USDCAD pair was seen trading at fresh daily lows at around 1.3960 during the US session. 

Earlier in the day, US jobless claims came out. Two weeks ago, it was a record 3.3 million initial claims;  last week, it was an additional (upwardly revised) 6.875 million in initial claims, and this week another 6.606 million claims. That is a shocking 16.78 million people who have applied for unemployment benefits in the last three weeks. 

That already represents a 13% unemployment rate in the US, much higher than after the great financial crisis in 2008. Nevertheless, US equities rocketed higher after these numbers, again.

In Canada, the labor market data were also released. The net change in employment crashed to -1,010K, sharply below expectations of a -350k print. The unemployment rate soared to 7.8%. These were excellent news for the Canadian dollar, which rose 100 pips afterward. 

From other news, the Fed announced more stimulus, this time aimed at small businesses. Moreover, the central bank will now buy high yield bonds in massive amounts. The Fed is already buying every asset class but stocks, and it looks like there is no free market anymore. 

Finally, The preliminary University of Michigan consumer sentiment survey for April fell to 71.0 vs. 89.1 prior months, the most significant monthly decline on record.