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Forex - USD/CAD hits 1-week low following jobless data

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Forexpros - The U.S. dollar was down against its Canadian counterpart on Thursday, hitting a one-week low following the release of weaker-than-expected data on U.S. jobless claims, while markets looked ahead to Friday's highly-anticipated speech by Federal Reserve Chairman Ben Bernanke.

USD/CAD hit 0.9809 during U.S. morning trade, the lowest since August 18; the pair subsequently consolidated at 0.9821, slumping 0.51%.

The pair was likely to find support at 0.9774, the low of August 17 and resistance at 0.9909, the high of August 23.

The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending August 19 rose by 5,000 to a seasonally adjusted 417,000, confounding expectations for a decline to 405,000.

The previous week's figure was revised up to 412,000 from 408,000.

Meanwhile, markets continued to look ahead to Friday's speech by Federal Reserve Chairman Ben Bernanke at the central bank's annual conference in Jackson Hole, Wyoming for any hints regarding fresh stimulus measures.

The loonie found further support after crude oil for delivery in October jumped 1.2% to trade at USD86.20 a barrel on the New York Mercantile Exchange, hovering close to a one-week high.

Raw materials, including oil account for about half of Canada's export revenue.

Elsewhere, the Canadian dollar was also up against the euro, with EUR/CAD shedding 0.37% to hit 1.4176.

Earlier in the day, market research group Gfk said its index of German consumer climate fell to a 10-month low of 5.2 from a final reading of 5.3 in August, amid concerns that global economic weakness will affect the domestic economy.

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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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