The euro may fall below 100 yen to a nine-year low in Forex Trading Markets. Canada’s dollar reached the strongest level in three weeks versus its U.S. counterpart before a report tomorrow that’s expected to show Canadian employers added jobs in August after a loss in July.
A weekly ichimoku chart shows the common currency has stayed below the so-called conversion line and baseline, said Toshiya Yamauchi, a senior currency analyst in Tokyo at the online currency-trading company. That indicates any gains for the euro are likely to be capped, Yamauchi said.
The currency, nicknamed the loonie, headed for a 0.4 percent gain this week after the Bank of Canada raised interest rates yesterday for the third time in less than four months and signaled it may be willing to boost them further this year.
U.S. stocks rose after initial jobless claims dropped more than forecast, bolstering optimism in the economic recovery.
The MSCI World Index of equities in 24 developed nations still rose 0.6 percent. The Standard & Poor’s 500 Index was up 0.5 percent after earlier climbing 1 percent. The drop in U.S. jobless claims tempered concern the economic recovery is slowing.
Applications for unemployment benefits fell by 27,000 to 451,000 in the week ended Sept. 4, Labor Department figures showed today in Washington. The forecast in a Bloomberg survey was for a decrease to 470,000.