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Forex - USD/CAD trims losses on fall in U.S. jobless claims

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Investing.com - The U.S. dollar pared back losses against the Canadian dollar on Thursday, pulling back from two-month lows after official data showed that U.S. initial jobless claims fell more-than-expected last week.

USD/CAD retreated from 1.0084, the pair's lowest since February 18, to hit 1.0106, still down 0.35% for the day.

The pair was likely to find support at 1.0056, the low of February 18 and resistance at 1.0155, the session high.

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 42,000 to a seasonally adjusted 346,000, last week compared to expectations for a decrease of 23,000.

The data eased concerns that the recovery in the labor market was losing momentum after U.S. nonfarm payrolls data for March came in far below expectations.

In Canada, official data showed that new house price inflation rose 0.2% in February, confounding expectations for a decline of 0.3%, led higher by increases in labor costs and materials.

The Canadian dollar remained supported as last week's aggressive monetary easing measures by the Bank of Japan continued to underpin investor demand for higher yielding assets.

The loonie, as the Canadian dollar is also known, was trading close to four-and-a-half year highs against the yen, with CAD/JPY easing down 0.16% to 98.22.

Also Thursday, official data showed that U.S. import prices fell 0.5% in March, in line with expectations.

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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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