The U.S. dollar rose against the Canadian dollar Thursday morning after a report showed that the number of initial U.S. unemployment benefit claims fell last week. By 11 a.m. the U.S dollar was trading at 1.3767. According to a government report released earlier on Thursday, initial U.S. unemployment benefit claims fell to the lowest level since October 2000. As initial unemployment benefit claims decline for a third consecutive week, it becomes more evident that the U.S. economy has been able to complete the picture of a strong overall economic development.

Thursday's data raised optimism that a report on Friday will show the U.S. economy has been able to create enough new jobs to keep up strong U.S. consumer spending. In March the U.S. economy created more new jobs than at any point in almost four years. While the job market situation in the U.S. seems to be improving, analysts are also keeping a close eye on Canada's latest job market data, due on Friday. After the release of a disappointing gross domestic product number the Canadian dollar is very vulnerable to tomorrow's data. Further disappointment from Canadian economic data could send the Canadian dollar lower against the U.S. dollar. This however will also depend on the outcome of tomorrow's U.S. employment data.

The euro declined against the Canadian dollar Thursday morning, after the European Central Bank (ECB) left its key interest rate unchanged at 2 percent. By 11 a.m. the euro was trading at 1.6627. The latest decision has been widely expected amongst analysts. The Eurozone's economy had been struggling over the last couple of months, but now seems to have improved as the manufacturing and services industry have expanded and business confidence jumped to a three-year high in April. However, unemployment in the Eurozone remained at high levels for a 13th consecutive month in March. While many analysts believe that high unemployment and low consumer spending is holding back a stronger economic expansion in the Eurozone, the ECB remains skeptical whether a lower level of interest rates would be a long-term solution.

The pound appreciated against the Canadian dollar Thursday morning, after the Bank of England raised its key interest rate level from 4 percent to 4.25 percent earlier on Thursday. By 11 a.m. the pound was trading at 2.4689. The latest move came as no surprise, as Britain's economy continues to expand at a fast pace. With strong retail sales and the lowest unemployment rate among the Group of Seven industrial nations, the U.K. economy is expected to expand four times faster than Eurozone's economy this year.

Market Report given by Roman Muhlbauer, Accu-Rate Corporation.

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