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Forex - Greenback rises to 11-year highs vs. loonie

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Investing.com -

Investing.com - The U.S. dollar rose to 11-year highs against its Canadian counterpart on Thursday, after the release of mixed U.S. data, as the struggling oil market continued to weigh on demand for the Canadian currency.

USD/CAD hit 1.3416 during early U.S. trade, the pair's highest since June 2004; the pair subsequently consolidated at 1.3402, advancing 0.60%.

The pair was likely to find support at 1.3229, Wednesday's low and resistance at 1.3812.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending September 19 increased by 3,000 to 267,000 from the previous week's total of 264,000, compared to expectations for a 7,000 rise.

Separately, the U.S. Commerce Department said that total durable goods orders decreased by 2.0% last month, matching forecasts. Orders for durable goods in July were revised to a gain of 1.9% from a previously reported increase of 2.2%.

Core durable goods orders, which exclude volatile transportation items, were flat in September, compared to expectations for an increase of 0.1%. Core durable goods orders rose 0.4% in July.

Investors were looking ahead to a speech by Federal Reserve Chair Janet Yellen later Thursday for additional clarity on the bank's decision last week to leave interest rates on hold.

Meanwhile, weakened oil prices weighed heavily on the commodity-linked Canadian dollar. Crude oil futures for November delivery were down 0.79% at $44.12 at the open of U.S. trading.

The loonie was sharply lower against the euro, with EUR/CAD rallying 1.24% to 1.5086.

In the euro zone, the German research institute Ifo earlier reported that its business climate index ticked up to 108.5 this month from August's 108.4. It was the highest reading in four months and was ahead of forecasts of 108.0.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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