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Forex - US dollar edges higher against Canadian dollar

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Investing.com -

Investing.com - The U.S. dollar edged higher against the Canadian dollar on Thursday, after data showed that the number of people filing first time claims for jobless benefits in the U.S. last week rose, but the underlying trend indicated improving labor market conditions.

USD/CAD touched highs of 1.1264 and was last up 0.12% to 1.1248.

The dollar found support after the Department of Labor reported that the number of American filing for initial jobless benefits in the week ending October 18 increased by 17,000 to a seasonally adjusted 283,000 from an upwardly revised 266,000 in the previous week.

Economists had expected jobless claims to rise by 16,000 to 282,000.

The four-week average fell to 281,000, the lowest since May 2000, while continuing claims, which counts people receiving benefit for at least the second month in a row, also hit a 14-year low, of 2.35 million.

Market sentiment was boosted as upbeat corporate earnings reports eased concerns over slowing global economic growth.

Fears that a slowdown in global growth could act as a drag on the U.S. economy have prompted investors to reassess expectations on how soon the Federal Reserve will raise interest rates after its stimulus program winds up later this month.

Elsewhere, the loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD easing up 0.13% to 1.4231.

The single currency found support after data earlier Thursday showed that the euro zone saw a marginal uptick in business activity in October.

Research group Markit said its preliminary euro zone manufacturing purchasing managers' index ticked up to 50.7 this month from a final reading of 50.3 in September. Analysts had expected the index to slide to 49.9.

The services PMI held steady at 52.4, slightly above expectations of 52.0.

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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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