Business : USD Exchange Rates are Still Declining
The US Dollar (USD) exchange rate is continuing to decline as it has consistently during recent months.
From the most recent US jobs report, we can see that over 240,00 employment positions have been created within the US economy during the past month, while the overall unemployment rate remained at 4.9 percent – meeting analytical predictions.
Positive vs. Negative
These factors combined represent a positive for the USD currency, however we have to consider the negatives. The US earning figures increased by only 2.2 percent over the past year, which is bad news for investors hoping to see the US economy improve drastically.
Another point to consider is the popular theory amongst analysts that the US is once again about to fall into recession.
Lasting Effects
It is likely these updates are contributing to the most recent decline. As an illustrative example, he GBP/USD exchange rate had previously remained within the low 1.4100s around the time of the European equities session, however with the poor wage growth and heightened US job numbers, the Dollar has weakened. The rate has now raised to 1.42192.
Spreading North
The current economic state of the United States has also had significant effects on the Canadian Dollar, as it has in the past.
As a result, the GBP/CAD has reached 1.885 while the USD/CAD rate is currently 1.326.