Investing.com - The U.S. dollar climbed to the highest level in two weeks against its Canadian counterpart on Thursday, as disappointing U.S. jobless claims added to concerns over the outlook for global economic growth, following a string of weak economic reports from the euro zone and China.
USD/CAD hit 0.9812 during early U.S. trade, the session high and the pair’s highest since September 7; the pair subsequently consolidated at 0.9806, gaining 0.63%.
The pair was likely to find support at 0.9724, Wednesday’s low and near-term resistance at 0.9833, the high from September 7.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 15 fell by 3,000 to a seasonally adjusted 382,000, compared to expectations for a decrease of 10,000 to 375,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 45 of the past 47 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Market sentiment had weakened broadly earlier, after preliminary data showed that euro zone manufacturing activity improved modestly in September, but remained in contraction territory for the 13th consecutive month, while service sector activity slumped to the lowest level since July 2009.
The euro zone’s manufacturing purchasing managers’ index rose to a seasonally adjusted 46.0 in September from a final reading of 45.1 in August, compared to expectations for a reading of 44.5.
The services PMI fell to 46.0 from 47.2 in August. Analysts had expected the index to tick up to 47.4 in September.
Manufacturing activity in France tumbled unexpectedly in September, dropping to a three-and-a-half year low.
France’s manufacturing PMI fell to 42.6 in September from a final reading of 46.0 in September. Analysts had expected the index to come in at 46.4.
Service sector activity in France declined to a four-month low of 46.1 in September from a final reading of 49.2 in August.
Market sentiment found brief support earlier after data showed manufacturing activity in Germany in September contracted at the slowest rate in six months, while service sector activity grew modestly.
Germany’s manufacturing PMI rose to 47.3 in September from a final reading of 44.7 in September. Analysts had expected the index to come in at 45.3.
Service sector activity in Germany increased to a four-month high of 50.6 in September from a final reading of 48.3 in August.
The data came after a report showed China’s HSBC flash purchasing managers' index ticked up to 47.8 in September from a nine-month low in August of 47.6, but remained below 50 for an 11th consecutive month in a row, showing the sector was still contracting.
Later in the day, the U.S. was to release official data on an index of manufacturing activity in Philadelphia.
Meanwhile, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD dipping 0.22% to trade at 1.2689.
Also Thursday, Spain saw borrowing costs fall at an auction of ten-year government bonds on Thursday, amid ongoing uncertainty over whether Spain is about to ask for more financial aid, which would mean signing up to a permanent bailout fund.
Spain’s Treasury sold EUR859 billion worth of 10-year government bonds at an average yield of 5.66%, down from 6.64% at a similar auction last month.
USD/CAD hit 0.9812 during early U.S. trade, the session high and the pair’s highest since September 7; the pair subsequently consolidated at 0.9806, gaining 0.63%.
The pair was likely to find support at 0.9724, Wednesday’s low and near-term resistance at 0.9833, the high from September 7.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 15 fell by 3,000 to a seasonally adjusted 382,000, compared to expectations for a decrease of 10,000 to 375,000.
The previous week’s figure was revised up to 385,000 from a previously reported 382,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 45 of the past 47 weeks, though lately claims have been pushing higher from the 350,000 associated with above-average job growth.
Market sentiment had weakened broadly earlier, after preliminary data showed that euro zone manufacturing activity improved modestly in September, but remained in contraction territory for the 13th consecutive month, while service sector activity slumped to the lowest level since July 2009.
The euro zone’s manufacturing purchasing managers’ index rose to a seasonally adjusted 46.0 in September from a final reading of 45.1 in August, compared to expectations for a reading of 44.5.
The services PMI fell to 46.0 from 47.2 in August. Analysts had expected the index to tick up to 47.4 in September.
Manufacturing activity in France tumbled unexpectedly in September, dropping to a three-and-a-half year low.
France’s manufacturing PMI fell to 42.6 in September from a final reading of 46.0 in September. Analysts had expected the index to come in at 46.4.
Service sector activity in France declined to a four-month low of 46.1 in September from a final reading of 49.2 in August.
Market sentiment found brief support earlier after data showed manufacturing activity in Germany in September contracted at the slowest rate in six months, while service sector activity grew modestly.
Germany’s manufacturing PMI rose to 47.3 in September from a final reading of 44.7 in September. Analysts had expected the index to come in at 45.3.
Service sector activity in Germany increased to a four-month high of 50.6 in September from a final reading of 48.3 in August.
The data came after a report showed China’s HSBC flash purchasing managers' index ticked up to 47.8 in September from a nine-month low in August of 47.6, but remained below 50 for an 11th consecutive month in a row, showing the sector was still contracting.
Later in the day, the U.S. was to release official data on an index of manufacturing activity in Philadelphia.
Meanwhile, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD dipping 0.22% to trade at 1.2689.
Also Thursday, Spain saw borrowing costs fall at an auction of ten-year government bonds on Thursday, amid ongoing uncertainty over whether Spain is about to ask for more financial aid, which would mean signing up to a permanent bailout fund.
Spain’s Treasury sold EUR859 billion worth of 10-year government bonds at an average yield of 5.66%, down from 6.64% at a similar auction last month.