Investing.com - The U.S. dollar bounced off a seven-week low against its Canadian counterpart on Thursday, erasing losses amid reduced expectations for further monetary easing measures by the Federal Reserve following the release of upbeat U.S. employment data.
USD/CAD hit a session low of 1.0099 earlier in the session, before clawing back to trade at 1.0135, inching up 0.06%.
The pair was likely to find near-term support at 1.0099, the session low and a seven-week low and resistance at 1.0171, the high from July 3.
The greenback found support after positive U.S. employment data eased expectations for further monetary easing measures by the Federal Reserve.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell by 14,000 to a seasonally adjusted 374,000, compared to expectations for a decline of 3,000 to 385,000.
The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000.
The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
Investors had been eyeing Thursday’s U.S. data amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
While not viewed as a reliable guide for the government jobs report due Friday, it does give guidance on private-sector hiring.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD tumbling 1.2% to trade at 1.2541.
The euro came under pressure after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty”.
Draghi also refused to speculate on the chances of a third round of Long Term Refinancing Operations, in which it would provides cheap loans to European banks in an attempt to encourage them to lend.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region.
The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
USD/CAD hit a session low of 1.0099 earlier in the session, before clawing back to trade at 1.0135, inching up 0.06%.
The pair was likely to find near-term support at 1.0099, the session low and a seven-week low and resistance at 1.0171, the high from July 3.
The greenback found support after positive U.S. employment data eased expectations for further monetary easing measures by the Federal Reserve.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell by 14,000 to a seasonally adjusted 374,000, compared to expectations for a decline of 3,000 to 385,000.
The previous week’s figure was revised up to 388,000 from a previously reported 386,000.
The data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 176,000 in June, easily surpassing expectations for an increase of 105,000.
The previous month’s figure was revised down to a gain of 136,000 from a previously reported increase of 133,000.
Investors had been eyeing Thursday’s U.S. data amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
While not viewed as a reliable guide for the government jobs report due Friday, it does give guidance on private-sector hiring.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD tumbling 1.2% to trade at 1.2541.
The euro came under pressure after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty”.
Draghi also refused to speculate on the chances of a third round of Long Term Refinancing Operations, in which it would provides cheap loans to European banks in an attempt to encourage them to lend.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region.
The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.